P.E. Firm Makes Hostile, Larger Offer For Club Med

Jul 1 2014 | 7:25am ET

One private equity firm is threatening another’s holiday plans.

Italy’s Investindustrial yesterday announced a €790 million (US$1.1 billion) hostile takeover bid for resort company Club Méditerranée. The offer threatens to sink a €557 million bid made by fellow p.e. firm Ardian and China’s Fosun International last year.

The Ardian-Fosun offer is backed by Club Med’s board, and the two firms already own 20% of the company. But Investindustrial chief Andrea Bonomi said his deal was “better not just for Club Med, but also for those who work there.”

Bonomi has proposed building six new Club Meds and increasing the number of beds at its resorts by 33%. All told, his plans would cost €150 million more than Club Med’s board currently expects to spend.

“The problem with Club Med is lack of vision,” he said.

Bonomi’s Strategic Holdings owns an 11% stake in Club Med.

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