PARIS Accor SA said it walked out of talks to buy Granada Compass Group Plcs hotel division because the operator of the Le Meridien chain is asking too much for the business.
The 248 hotels on the block may fetch as much as $5.8 billion, analysts said. For Accor, any major acquisition must contribute to growth of earnings per share and be financially balanced, the company said in a statement. The recent discussions have not led to a satisfactory agreement.
Granada Compass invited other bidders as the European hotel industry gears up for a wave of acquisitions, led by companies such as Bass Plc, which sold its breweries to expand its Holiday Inn and other lodging chains. The Le Meridien brand, with 120 four-star hotels in 55 countries, is seen as the most attractive in the Granada portfolio. (10/17/00)