Air France Postpones Decision on Meridien Stake Sale Again
Air France's decision to sell its controlling stake in the Meridien hotel chain has been delayed, marking the third time the state airline has postponed its decision. The sale has been complicated by political and financial considerations, with the French Government seeking 20 billion French francs in aid for Air France. The airline has stated that it will announce its decision on the successful bidder, either Accor SA or Forte plc, after a board meeting tomorrow. Forte is widely tipped to be the successful bidder, having offered 1.8 billion francs to acquire Air France's entire Meridien stake, compared to Accor's 1.6 billion francs for a 40 per cent stake.
Key Takeaways:
- Air France has postponed its decision on the sale of its controlling stake in the Meridien hotel chain for the third time, citing political and financial considerations.
- The French Government has requested 20 billion French francs in aid for Air France, which is opposed by rivals such as British Airways.
- Air France has stated that it will announce its decision on the successful bidder after a board meeting tomorrow.
- Forte plc is widely tipped to be the successful bidder, having offered to acquire Air France's entire Meridien stake for 1.8 billion francs.
- Accor SA, backed by Saudi Arabian Prince Al-Waleed, has bid 1.6 billion francs for a 40 per cent stake in the Meridien hotel chain.
- Both Accor and Forte have increased their bids by 100 million francs since the initial offers.
Statistics:
- Air France's controlling stake in the Meridien hotel chain is valued at 57.3 per cent.
- The Meridien hotel chain operates 59 luxury hotels worldwide.
- Forte's initial bid to acquire Air France's 57.3 per cent stake in the Meridien hotel chain was for 1.8 billion francs.
- Accor's initial bid for a 40 per cent stake in the Meridien hotel chain was for 1.6 billion francs.
- The French Government has requested 20 billion French francs in aid for Air France.
Sources:
- Bloomberg.