Club Mediterranee SA, the French operator of holiday resorts, rose to the highest in more than five years after funds associated with Italy’s Andrea Bonomi said they may make a takeover bid rivaling a pending offer.
Investindustrial Development is considering an offer for Club Med, the investment company yesterday told the Autorite des Marches Financiers after a request for Bonomi to clarify his strategy. The price would be subject to a due-diligence process and a bid may be made five weeks after that process concludes, the fund said. The French market regulator set a deadline of June 30 for Bonomi to either make an offer or walk away.
Bonomi, the former chairman of Banca Popolare di Milano Scarl, has acquired more than 10 percent of Club Med shares through his Strategic Holdings investment vehicle, according to data collected by Bloomberg. A bid might scupper the offer made by Club Med shareholders Ardian Sarl and Fosun International Ltd.
Club Med rose 2.1 percent to 19.56 euros at the close of trading in Paris, the highest since Oct. 3, 2008. That valued the Paris-based company at 653 million euros ($889 million).
Gaillon, the investment vehicle created by Ardian, formerly known as Axa Private Equity, and Fosun, a Chinese investment company, made a 17-euro per share offer a year ago, seeking to remove the travel company from the spotlight of capital markets to accelerate a turnaround. The offer is subject to 50 percent of shares being tendered, and was sweetened to 17.50 euros a month later. The bid has been extended to close June 6, the AMF said.
Gaillon doesn’t plan to raise its offer, Reuters said today, citing a spokeswoman.
Club Med shares have traded above 17.50 euros per share since mid-March, indicating some investors speculate the offer might be raised further or surpassed by another bid.
The French market regulator had demanded a clarification of the intentions of Bonomi, his investment company Strategic Holdings and parties acting in concert with them.