The Accor Group will split into two

Nothing will ever be. Directors of Accor approved on Tuesday a proposed split of the group that plans to separate one side hotel, other services (including Ticket Restaurant). The decision was taken unanimously with a vote, the Strategic Investment Fund (ISF). Accor's second largest shareholder with 7.4% of capital, "sovereign wealth fund to the French" had opposed the project, or at least its timing. In our columns, Gilles Michel, CEO of FSI, had deemed "risky". However, it has joined any of the six independent directors on the board (of twelve). A setback for the fledgling fund in the battle that played out behind the scenes.

Accor cut in half, it was the wish expressed long ago by the fund Colony and the investment company Eurazeo, bound by a pact and initial shareholders with about 30% of capital.They say the best way to value the group ending the discount for holding that penalizes the share price. Gilles Pelisson, Accor's CEO, agreed with their opinion in recent months. He will lead the hotel industry (Accor Hospitality). The new entity combining the services will be headed by Jacques Stern. The deputy director general in charge of piloting the project finance division to completion.

"The split does isno job cuts'

An extraordinary general meeting will be convened no earlier than late June to endorse the project to be implemented before the end of 2010. "I said before the group walked on two legs better, but I always said that the subject was not taboo and it would look on a regular basis, was justified Gilles Pelisson, explaining that two looms Accor had profoundly transformed in recent years.He believes that now is in their interest that they become "pure players". "The central scenario, with the final terms will be decided in the coming months, is a split with two listed companies, a detailed Gilles Pelisson. Accor to action today, you have an action Accor Hospitality and action Accor Services. "

On the job – a concern of the unions – he assured that "the division does not create job cuts as there are no synergies between the two professions.

Eurazeo and Colony Capital have agreed to extend to shares of two companies that will arise from the splitting of the provisions of shareholders agreement between them since May 2008 until May 4, 2013. They also extend within the pact until 1 January 2012 the commitment to retain their shares in Accor and entity services.Conversely, the ISP finds his freedom of action vis-?-vis participation inherited from the Deposit.

Studies conducted by management have shown a separation of two Accor would enable it to "accelerate" the development of both trades. Emphasizing the lack of synergy between hospitality and services that evolve "in environments increasingly different," the work of the board have concluded that once separated these two businesses, "with their own business model, attract a greater number of investors. " According to Sebastien Valentin, an analyst at Societe Generale, services should represent 14% of sales this year of Accor, but two-thirds of operating profit."This poses a problem of balance, because culturally Accor remains primarily a hotel company," says he.

Without the hotel, receive services at 100% of the cash they emerge to finance their development. As for the hotel, without the cushion of safety that brought him the services it should expedite the sale of walls.

For the ISP, a division of Accor is too risky

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