China’s Fosun International is expected to outdo an Italian private-equity firm in the ongoing bidding war for control of French holiday operator Club Méditerranée, according to Reuters. The Chinese conglomerate, led by billionaire Guo Guangchang, introduced a last-minute offer for Club Med on Friday, with the deadline for a counteroffer from Italian capitalist Andrea Bonomi quickly approaching. The French resort corporation is valued at over 874 million euros ($1.1 billion.)
Fosun will announce its offer of 23.5 euros ($29.29) a share for Club Med, 0.5 euros more than Bonomi’s offer, sometime Monday afternoon. The Chinese conglomerate had previously offered 22 euros. "It's very expensive in view of the situation of the sector and of the company,” Oddo Securities analyst Fehmi Ben Naamane told Reuters. “There is no economic logic to paying such a price unless you have a very long-term view.” Fosun’s other recent investments have included various insurance and fashion markets around the world, according to the Wall Street Journal.
Club Med’s stock has risen significantly since the bidding war between Guo and Bonomi began in May 2013. The company’s stock, up more than 70 percent since last year, was stable at 23.94 euros a share on Monday.
Club Med was founded in 1950 and is considered the originator of the all-inclusive resort. It operates in exotic locations all over the world, including places in the Caribbean, the Indian Ocean, Africa and Asia. The company began building ski resorts in 1956 with its first winter village in Laysin, Switzerland. The tourism operator is headquartered in Paris.
The company took a hit in Europe, its main market, in recent years because of the weakened economy. Both Guo and Bonomi hope to expand the Club Med brand to China, Reuters reported.