Gaillon Invest doesn’t plan to raise Club Med bid-Reuters

(Reuters) – Gaillon Invest, the investment vehicle of Chinese conglomerate Fosun and French private equity firm Ardian, said it did not plan to raise its takeover offer for Club Mediterrannee despite a possible higher rival bid.

“Gaillon Invest has no intention of raising its offer above the 17.50 euro ($23.89) price, which represents a good price given what they know about the company and the market,” a Gaillon spokeswoman said on Tuesday.

She made the comments after funds led by Italian businessman Andrea Bonomi said on Monday they could make a counterbid for Club Med, saying they would first need access to the French holiday group’s books before making a decision.

French regulator AMF had asked for clarity on the funds’ intentions towards Club Med after one of them, Strategic Holdings, became Club Med’s top shareholder with a stake of more than 10 percent earlier this month.

The AMF said its board would on Tuesday review the funds’ declaration and its consequences, which could include giving the funds a deadline to submit a potential offer.

Club Med shareholders had been due to decide on whether to accept a long-delayed 557 million euro offer by Fosun, Ardian and management by Friday, but the AMF extended the deadline to June 6.

Shares in the holiday group were still trading above the existing offer price on Tuesday, touching a fresh high of 19.60 euros.

 

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