The Flight Centre Travel Group Ltd (ASX: FLT) share price is in the green on Tuesday amid rumours the company could be considering a major acquisition in the United States.
Flight Centre responded to media speculation on the potential transaction this morning. It said it is in various discussions regarding strategic opportunities.
The Flight Centre share price is currently trading at $16.94, up 1% on its previous close.
Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is bouncing higher following yesterday's 2% plunge. It's up 0.5% right now.
Meanwhile, Flight Centre's home sector, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) has lifted 0.66%.
Let's take a closer look at the latest news affecting the ASX travel share.
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Flight Centre share price up amid US acquisition rumours
The Flight Centre share price is heading north amid rumours the company is considering snapping up Altour International.
Altour is one of the largest travel management companies in the US. It boasted more than $3 billion in sales in 2019 before the pandemic hit.
Rumours that the US giant could be a takeover target for its Australian counterpart were reported by The Australian yesterday.
The publication referred to comments made in Flight Centre's latest earnings report released last Thursday. The report highlighted the potential for merger and acquisition (M&A) activity. Indeed, the company noted its medium-term capital strategy will allow for growth, both organic and through mergers and acquisitions.
The article also noted that Altour International could be worth as much as $700 million.
The response from Flight Centre
In response to the rumours, Flight Centre today told the market:
While it is company policy to not respond to media speculation, the company has had, and continues to have, various discussions with a number of parties regarding strategic opportunities.
The company assured the ASX it is compliant with listing rules and will continue to adhere to continuous disclosure obligations.
The Flight Centre share price has slumped 10% year to date. It's trading flat with where it was this time last year.
Meanwhile, the ASX 200 has dumped 8% since the start of 2022. It has also fallen 7% over the past 12 months.
