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Travelocity investors sue to block sale

Shareholders of the online travel agency call Sabre's offer to buy the 30 percent of the company it doesn't already own "inadequate." said Monday that multiple shareholders have filed lawsuits to halt the sale of the online travel agency.

Sabre, a technology provider for the travel industry, owns 70 percent of Travelocity's stock and, according to Travelocity, said two weeks ago that it intends to purchase the remaining 30 percent for $23 a share. The shareholders who have sued to stop the sale say Sabre's offer is "inadequate."

Shares of Fort Worth, Texas-based Travelocity ended last week at $25.87, 33 percent lower than its 52-week high of $38.79.

With competition in the Web's travel industry heating up during the past year, Travelocity lost ground to competitors. For example, Expedia replaced Travelocity as the No. 1 travel site after reporting higher gross bookings during the past quarter.

Travelocity said Sabre is due on Tuesday to officially tender an offer for the Travelocity shares it doesn't own. A Travelocity representative said the company has formed a committee to evaluate the offer. The representative declined to comment on the lawsuits.

A Sabre representative also declined to comment, citing the company's policy of not commenting on pending litigation.