Club Med Focus of Buyout by Top Shareholders

PARIS -- Shares in Club Mediterranee rose sharply Monday on word that the iconic French vacation resort operator's two largest shareholders are launching a buyout.

The offer by Axa Private Equity of France and Fosun, a Shanghai, China-based investment company, values Club Med stock at 556 million euros ($719.41 million).

Axa PE and Fosun already own a combined 19.33% of Club Med shares representing 24.87% of the voting rights. They are offering 17 euros a share for the rest of Club Mediterranee's stock.

In a statement, Axa PE and Fosun said the offer would be made in the coming days.

Club Med shares jumped 22% to 16.95 euros following news of the planned offer.

Founded in 1950, Club Med operates about 80 resorts in Europe and around the world.

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