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Reuters

Chinese billionaire Guo Guangchang sweetened his bid for struggling Club Mediterranee at the last minute yesterday, trumping a €24-a-share offer from Italian tycoon Andrea Bonomi in France's longest-running takeover battle.
The new €24.60 offer, made a few hours before yesterday's 5pm GMT deadline, valued the holiday operator at €939 million (HK$8.96 billion).
It is the eighth offer that Club Med investors have been asked to evaluate since May 2013 when Guo first offered €17.
The Bonomi camp could not be immediately reached for comment. France's AMF regulator set a new deadline of 5pm GMT on January 7 for the Italian's Global Resorts vehicle to make another counterbid.
The AMF said trading in Club Med shares, suspended before yesterday's announcement, would resume at 11am GMT. The stock closed at €24.90 on Thursday, up 43 per cent this year.
Guo and Bonomi have been raising the bidding in turn for months. Both men see turnaround potential in a business damaged by the weak economy in its core market of Europe and by a stalled attempt to move upmarket.
Both also hope to develop the brand in faster-growing China though Bonomi has said Club Med must also focus on Europe and notably France. The company's management has consistently backed Guo's offer.
The Guo camp said on Friday that it would continue to invest in France and could consider a delisting of Club Med. Bonomi is also in favour of a delisting.
Guo, who Forbes estimates has a net worth of about US$4.3 billion, has described Club Med as an ideal investment to tap booming Chinese demand for the kind of leisure it offers for its harried and increasingly affluent city dwellers.
The latest offer was made by Gaillon Invest II, majority controlled by Guo's Fosun. It now comprises Fosun with a 62.6 per cent stake, Portuguese insurer Fidelidade with a 20 per cent stake, French private equity partner Ardian with a 5.8 per cent stake, the management of Club Med with a 2.9 per cent stake and Chinese travel agency U-Tour with a 8.7 per cent stake.
The amount of acquisition debt will increase to €280 million with no financial impact on the company, Gaillon Invest said in a statement.
Brazilian investor Nelson Tanure has confirmed his interest in investing in Gaillon II and would own up to 20 per cent, Gaillon Invest added.


Chinese billionaire Guo raises offer for Club Med in France's longest takeover battle

Guo Guangchang

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