Online travel company Travelocity is in advanced talks to buy Lastmintue.com for a reported £577m.

Lastminute, the company which epitomised the dot.com boom, employs 2,000 people in 13 European countries and the news saw the company’s share price increase 45% to 150p.

However, industry commentators have warned the approach by Travelocity could trigger a bidding war by entrepreneur Barry Diller’s InterActiveCorporation, which owns Expedia, Cendant and ebookers.

The talks are believed to have started a few weeks ago and may be the reason why former Lastminute finance director David Howell delayed his departure despite his replacement, Stephen Gleadle, starting work two weeks ago.

Lastminute was started by Martha Lane Fox and Brent Hoberman in 1998, although Lane resigned two years ago.

Travelocity is owned by US company Sabre Holdings.

 
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