Sabre stock soars 33%, company initiates shareholder rights plan

Investing.com – Sabre Corporation (NASDAQ: SABR) stock surged 32.6% on Monday after the company announced that its board adopted a limited-term shareholder rights plan to respond to Constellation Software Inc. (Toronto Stock Exchange: CSU) accumulating a large stake in the company.

The rights plan is effective immediately and will last for one year. The adoption of the plan follows Constellation’s accumulation of a 9.7% economic interest in Sabre between April and November 2025, including 4.7% beneficial ownership of common stock and an additional 5% through derivatives.

Sabre stated that it had engaged in discussions with Constellation and had begun negotiations on a strategic governance agreement to appoint the CEO of Constellation’s Vela Software division to the board. However, on February 26, Constellation abruptly halted negotiations, indicating that its intentions “will become clear over time.”

The company noted that Constellation had previously hinted that its investment in Sabre was similar to its stake in Asseco Poland S.A., which it currently owns 24.8% of. Constellation is an enterprise that has been acquiring software companies, and its operating group Vela Software has acquired several travel technology companies in recent years.

Sabre attempted multiple times to reconnect with Constellation on February 26 and 27 but has yet to receive a response. On February 28, Constellation withdrew its formal nomination of a second board candidate without providing any explanation.

The Texas-based company stated that the rights plan was not adopted in response to any proposal to acquire control of Sabre and does not intend to prevent the board from considering offers that are fair and in the best interests of shareholders. The company remains open to resuming discussions with Constellation under acceptable terms.

The rights plan aims to ensure fair and equal treatment for shareholders in any proposed acquisition and to reduce the likelihood of any individual gaining control through open market accumulation without paying an appropriate control premium.

U.S. Bank Securities serves as Sabre’s financial advisor, and Kirkland & Ellis LLP as legal counsel.

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