NEW YORK (TheStreet) -- Shares of Priceline Group Inc. (PCLN) are slightly higher in pre-market trade after the online travel company and Shanghai-based Ctrip.com International, Ltd. (CTRP) announced that they expanded an existing commercial agreement to strengthen their global partnership.
The Priceline Group also agreed to invest $500 million through a convertible bond and Ctrip has granted The Priceline Group permission to acquire Ctrip shares in the open market over the next twelve months, so that combined with shares convertible under the bond, The Priceline Group may hold up to 10% of Ctrip's outstanding shares.
Upon purchase of the convertible bond, The Priceline Group will acquire the right to appoint an observer to the Ctrip board of directors.
Shares of Ctrip.com are up 9.29% to $66.06 in pre-market trade.
TheStreet Ratings team rates PRICELINE GROUP INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate PRICELINE GROUP INC (PCLN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow."