Charity & Investment Merger Arbitrage Fund (CIAM) has appealed against the approval given to the deal by French regulators, according to French newspaper Liberation.
The deal was set to be closed on August 30, but the appeal will push the completion back by four to six month, said CIAM’s lawyer Julien Visconti.
He said that not enough information was provided about a “huge package of preferred shares” awarded to Club Med’s management, which supoorted the deal.
Club Med CEO Henri Giscard d’Estaing recently told French newspaper Le Figaro that the appeal could do damage to the company.
Club Mediterranee’s board accepted a sweetened bid of €17.50 per share from Axa and Fosun last month, up from the previous offer of €17 per share, which valued the business at €556m.
CIAM bought a one per cent stake in the company in May after the €17 per share bid was announced.
The two firms said they would look to accelerate Club Med’s development strategy in emerging markets and strengthen its position in mature markets such as Europe. They will hold stakes of 46 per cent each and the balance will be owned by Club Med managers.
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