Chinese conglomerate Fosun struck back with a new offer to control high-profile French holiday firm Club Med today, in a last-minute attempt to outflank an Italian bidder.
Club Med, once famous for thatched-roofed, free-wheeling holiday villages which inspired a popular comedy film in France, is coveted for its potential to appeal to new middle classes in emerging economies.
In its early days, Club Med was associated very much with the French way of having fun, and was seen as a strong French brand. If the latest bid is successful, the company will come under strong Chinese influence, but will retain a listing on the Euronext market in Paris.
Fosun, with its French ally Ardian and other partners, made a counter-bid valuing Club Med at 839 million euros (USD 1.08 billion), they said today.
The latest offer, lodged just hours before a deadline ran out, outbid by 4.8 per cent an offer of 790 million euros by Italian businessman Andrea Bonomi and his associates.
The new bidders said that they would boost Club Med's strategy of developing market shares on mature markets, notably in France, and on rapidly growing markets such as China, Brazil, Russia, and South East Asia.
Club Med first became a high-profile name in the European tourism industry because it offered holidays in somewhat hippy style villages where sports activities were included.
It has since moved up-market, weathered financial storms in the process, and is now looking for further expansion, including in China.
Fosun, Ardian, travel company U-Tour and Portuguese insurance firm Fidelidade, pitched their offer for Club Mediterranee at 22.0 euros (USD 28.43) a share.
That compared with 21.0 euros (USD 27.14) offered by Bonomi, and with 17.50 euros (USD 22.62), valuing Club Med at 590 million euros first offered by Fosun in an unsuccessful offer in partnership with investment firm Ardian.
The terms include 23.23 euros (USD 30.02) per convertible share.
U-Tour, quoted on the Shenzhen stock market, is a leading tour operator in China and already sells Club Med holidays. Fidelidade is controlled by Fosun.
When the first joint offer by Fosun and Ardian was topped by the arrival of Bonomi as an alternative buyer, Fosun and Ardian pulled out, and had until the end of today to make a new offer.
The new bidders said that Fosun was "the majority partner" in the latest offer and that Ardian was playing only a small role.
