Tuesday, July 24, 2007
Feeling the pain – watch the hospitality and tourism sectors
Expedia Inc.'s decision to scale back a share repurchase by almost 80 percent underscores the threat that tighter credit poses for the U.S. stock market. The world's largest online travel agency, chaired by billionaire Barry Diller, abandoned a plan announced last month to borrow $3.5 billion and use the money to buy back 42 percent of its stock. Instead, the Bellevue, Washington-based company will spend no more than $750 million for a 9 percent stake.