DALLAS According to HVS International, Accor has confirmed that it has entered negotiations with GranadaCompass.
News of Accor s involvement brings up questions regarding how the company will finance such an investment. Means of funding discussed included increasing the company s debt, selling off assets or conducting a rights issue.
In an earlier statement made by Accor, any deal would need to be strategically decisive and earning-enhancing. If Accor were to be successful in this deal, the company would be placed in a most powerful position. The Le Meridien brand is quite sought after; however, if GranadaCompass chooses to sell off its hotel assets as one package, the price will be quite high. No agreement is expected to be inked in the short-term. (9/22/00)
SOURCE: HVS International