Accor Denies Takeover Rumours

16th May 2008 (Last Updated May 16th, 2008 09:14)

Accor says there are no plans to break up the group, amidst growing speculation of a takeover bid. Chairman Serge Weinberg told shareholders the group has no plans to break up its activities and "has the means" to develop both its hotel and services businesses in the medium term, Tho

Accor says there are no plans to break up the group, amidst growing speculation of a takeover bid.

Chairman Serge Weinberg told shareholders the group has no plans to break up its activities and “has the means” to develop both its hotel and services businesses in the medium term, Thomson Financial reports.

Earlier this month, investment companies Eurazeo and Colony Capital issued a shareholder pact, which has been interpreted as creating pressure for Accor to carry out value-creation moves, including the sale of its services division.

Under their five-year pact, Eurazeo and Colony have taken a combined 17.52 percent stake in Accor’s capital and plan to raise this holding to 30 percent.

Weinberg says Colony Capital has supported Accor’s strategy as an existing member of the company’s board.

The chairman says the group will seek to avoid any “creeping takeover” following the stake-building by Eurazeo and Colony.

He said the board would not oppose a takeover that involved a premium for shareholders, but he has a duty to prevent any move to take control of the company without agreeing a suitable price.

The investors said in a press release this month that they “do not intend to take control” of Accor.

By Elizabeth Clifford-Marsh