(Updates with further comments from Eurazeo conference call)
PARIS (Thomson Financial) - Accor said Eurazeo and Colony Capital have
signed a 5-year shareholder pact, and are taking control of 17.52 percent of the
capital and 15.71 percent of the voting rights of the hotel group.
Eurazeo and Colony said in a joint press release that they "do not intend to
take control" of Accor.
Accor said its board of directors had taken note of the development, as well
as Eurazeo and Colony Capital's intention to increase their joint stake
eventually to 30 percent.
Accor said before making a decision on Eurazeo's wish to be represented on
the company's board of directors, on which Colony Capital already has two
representatives, it wants the two players to "expressly confirm their support
for the group's development strategy, which is based on its two activities,
hotels and services."
Eurazeo added that it wants "a consistent and coherent representation on the
board of directors, similar to that of large investors like Colony Capital or
Caisse des Depots." The investor has not specified how many seats it will
request.
Accor management also wants Eurazeo and Colony Capital to guarantee that the
stake increase will not be accompanied by any attempt to take control of the
company, and to answer questions on the background of their agreement and the
conditions of the stake increase.
As part of the agreement, Eurazeo intends to increase its stake to around 10
percent of Accor's capital, while Colony Capital is seeking around 20 percent.
Eurazeo said that as of 13 May it will directly own 8.5 percent of the
capital of Accor. It bought shares in the market between February and May 2008,
bringing its shareholding to 9.6 million shares. It also bought 10 million
shares through a share purchase programme with a financial intermediary - this
could be increased to 11 million shares by the end of the year, Eurazeo said.
Eurazeo said the shareholder agreement is structured on a long-term,
five-year basis, and the intention is to have a two-year lock-up period. "We
want to have an equal number of representation and 50/50 corporate governance.
We want to have a common or joint position before any shareholders' meetings,"
Eurazeo said.
Eurazeo said it has "total confidence" in the management's strategy to
refocus on core businesses in which it is a leader. "Today it is not up to
Eurazeo to make comments on the strategy implemented by the management. We
support the strategy as it was defined and implemented," Eurazeo said.
Eurazeo confirmed that Lifetime Holdings withdrew from the concert agreement
on 2 May.
helen.beresford@thomsonreuters.com
hem/vlb
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