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Expedia to buy Orbitz in $1.6 billion deal

Expedia said Thursday that it will buy rival online travel booking company Orbitz in a deal valued at $1.6 billion.

Under the terms of the deal, Expedia will pay $12 per share for Orbitz, which closed Wednesday at $9.62 per share.

The transaction has been approved by the boards of both companies but is subject to approval by shareholders and regulators.

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