Chinese conglomerate Fosun International Ltd zeroed in on its 18-month quest to buy French holiday resorts group Club Med SA on Friday when Italian businessman Andrea Bonomi refused to raise his latest offer, reports the Tapei Times.
Fosun looked assured to win what became the longest bidding war in Paris bourse history when Bonomi’s Global Resorts SAS announced on Friday it would not better the 24.60 euro (US$29.55) per share price the Chinese group proposed for Club Med on Dec. 19.
That offer — which topped Global Resort’s last bid of 24 euros per share — values Club Med at 939 million euros, which represented too much, in Bonomi’s view.
“Having carefully analyzed the public offer for shares in Club Med SA, and, in particular the company’s valorization level, Global Resorts SAS has decided not to increase its bid, and consequentially intends to withdraw its offer,” financier Bonomi explained in a statement.
Bonomi’s decision clears the way for Fosun and its Chinese, Brazilian, Portuguese and French partners to move ahead with the acquisition of the famous French holiday group.
After weathering rough business seas over the past decade, Club Med improved its financial health by targeting higher-end clients, particularly among wealthier sections of emerging economies.