The last resort

july4cartoon w

Fosun may need to change its holiday plans. As earlier reported it has made a big push into the international tourism business. Foremost among these moves was its purchase of a 19.3% stake (in partnership with Arcadian Private Equity) in Club Med, and its bid last year to buy the rest of the company for €557 million ($760.23 million). This had looked like a done deal until a rival bid was recently tabled by Italian industrialist Andea Bonomi. He is offering €790 million. He disagrees with Fosun’s vision to take the brand upmarket and build lots of resorts in China. ‘‘No enterprise should bet its whole future on China, on one country,” Bonomi told the New York Times. Instead he wants to refocus on the mid-market in Europe, and particularly France. “If you are not strong in your home market, you lose your DNA,” he observed to the Financial Times. If shareholders accept Bonomi’s bid – which will expire on September 10 – he says he will look at balanced expansion in China, but possibly not with Fosun. “We have a lot of respect for Fosun but they are new in tourism,” he said.

© ChinTell Ltd. All rights reserved.

Sponsored by HSBC.

The Week in China website and the weekly magazine publications are owned and maintained by ChinTell Limited, Hong Kong. Neither HSBC nor any member of the HSBC group of companies ("HSBC") endorses the contents and/or is involved in selecting, creating or editing the contents of the Week in China website or the Week in China magazine. The views expressed in these publications are solely the views of ChinTell Limited and do not necessarily reflect the views or investment ideas of HSBC. No responsibility will therefore be assumed by HSBC for the contents of these publications or for the errors or omissions therein.