Priceline shares tumble after stock sale

Shares of Priceline fell more than 9 per cent after the company said conglomerate Hutchison Whampoa and sister property developer Cheung Kong (Holdings) have sold stock worth about 22 per cent of the online travel company.

Priceline shares, up nearly 40 per cent this year, were down US$3.16 ($4.96) or 9.25 per cent, at US$31 on the Nasdaq on Wednesday.

However some analysts were upbeat on the company. Stifel Nicolaus analyst Scott W. Devitt said in a research note: "We continue to believe Priceline is the best performing company in the online travel sector."

Priceline said Hutchinson and Cheung Kong had sold 8.9 million shares - 70 per cent of their holding, worth about US$304 million.

The two companies controlled by 78-year-old Hong Kong tycoon Li Ka-shing would still have the right to appoint representatives to the company's board, Priceline said.

Shares in Hutchison closed down 0.71 per cent and shares of Cheung Kong closed about 0.69 per cent lower.

Priceline made a name for itself with its "name-your-own-price" auction service for plane tickets and hotel rooms.

- REUTERS