NEW YORK (TheStreet) -- Shares of Ctrip.com International (CTRP) are down 3.33% to $81.81 on heavy volume in mid-morning trading Tuesday, after initially surging following the announcement that Priceline Group (PCLN) increased its stake in the Chinese travel site to 10.5%.
Priceline said it will pay for the new $250 million investment with a convertible bond.
"We consider Ctrip a market leader in China and we're investing in a company and a team that we believe fits well with our long-term view of China as a market and the Chinese people as global travelers," said Priceline CEO Darren Huston in a statement.
In August, Priceline announced a $500 million buy-in. The company also has the option to increase its stake in Ctrip.com to 15%.
Shares of Ctrip.com rose more than 5% before the stock market opened this morning.
About 3.64 million shares of Ctrip.com have exchanged hands as of 10:51 a.m. ET today, compared to its average trading volume of about 3.02 million shares a day.
Shanghai-based Ctrip.com International is an online travel agency.
Together with its subsidiaries, the company provides travel services for hotel accommodations, transportation ticketing services, packaged tours, and corporate travel management in China.
Separately, TheStreet Ratings team rates CTRIP.COM INTL LTD as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: