2 Firms Reverse Plans to Sell Off Priceline Shares

Priceline.com Inc. said two companies controlled by Hong Kong’s richest man were no longer seeking approval to sell shares in the online travel auction company and could increase their holdings to 37.5%.

The move comes as Priceline has been hit by a falloff in travel bookings after last week’s terrorist attacks in the U.S.

Cheung Kong Holdings Ltd. and Hutchison Whampoa Ltd., controlled by Hong Kong tycoon Li Ka-shing, withdrew their request for a shelf registration that would have entitled them to sell Priceline shares, the company said.

It said the firms, which now own about 60 million shares of Priceline stock, got approval from Priceline’s board to increase their ownership in the online retailer to 37.5% from about 27%.

Cheung Kong and Hutchison, which each hold two seats on Priceline’s board, had initially bought a 17.5% stake in Priceline in February, after Hutchison and Priceline last year formed a venture to bring the Priceline model to Asia.

Priceline.com’s shares, trading 90% below their year high, rose 26 cents to $2.29 on Nasdaq.