NEW YORK (TheStreet) -- Shares of Ctrip.com International (CTRP) were falling 2.5% to $75.14 Wednesday after the Chinese online travel company announced it is no longer interested in pursuing a potential merger and acquisition discussion with Qunar Cayman Islands (QUNR).
Ctrip said it send a confidential, non-binding, preliminary proposal to Qunar's board of directors in early May to indicate its interest in a potential transaction with the company. Qunar said ti would not accept the proposal earlier this week, but said it would be open to further discussions.
The company said it will continue "to explore other partnership opportunities that will bring strategic value in the Internet and e-commerce space," though it will no longer pursue discussions with Qunar.
About 2.7 million shares of Ctrip were traded by 12:36 p.m. Wednesday, compared to the company's average trading volume of about 3.3 million shares a day.
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:
"We rate CTRIP.COM INTL LTD (CTRP) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk."