Sabre Holdings Corp. (BBB+/Negative/--) today increased its cash tender offer for the approximately 30% of Travelocity.com that it does not already own, resulting in Travelocity's Special Committee recommending acceptance of the offer. The purchase price has been increased to approximately $420 million from the initial $345 million announced on Feb. 18. Standard & Poor's ratings and outlook on Sabre are unaffected by this announcement. The rationale for the acquisition is that "the long-term strategies of Sabre, the leading provider of technology, distribution, and marketing services for the travel industry, and Travelocity, the leading on-line travel site, are converging." The combination will allow both companies to pursue new revenue opportunities. Sabre has also announced that it may consider "capital raising opportunities,
