Travelocity Backs Sabre’s Buyout Bid

Online ticket seller Travelocity.com Inc. urged shareholders to accept a $420-million takeover bid from Sabre Holdings Corp. after the reservations giant sweetened its offer by 22%.

Should shareholders follow Travelocity’s recommendation and accept the $28-per-share bid, the merger would create one of the world’s most far-reaching travel companies, offering reservation services to everyone from travel agents and corporate clients to Web-savvy bargain hunters.

It also would reunite two former allies. Sabre spun off Travelocity.com in March 2000 through a reverse merger with Preview Travel but maintained a 30% equity stake and a 15% voting stake in the company.

Travelocity shares rose $1.07 to $27.97 on Nasdaq. Sabre fell 1 cent to $45.35 on the NYSE.