Bidding war hopes lift Club Med shares

Shares in Club Mediterranée rose 10 per cent yesterday after a new takeover offer by top shareholder Andrea Bonomi fuelled hopes of a bidding war for control of the French resort operator.

Investindustrial, the private equity fund led by the Italian tycoon, offered €21 per share for the 64-year-old, all-inclusive holiday pioneer on Monday. The deal is at a 22 per cent premium to an existing year-old €17.50-a-share joint offer by French private equity firm Ardian and Chinese conglomerate Fosun International.

Cub Med shares, which were suspended ahead of Monday’s announcement and resumed trading today, closed up 9.9 per cent at €21.45. The stock is up 20 per cent from three months ago.

Club Med’s board has yet to react to Bonomi’s offer. – (Reuters)