Troubled Times Ahead Predicted For Club Mediterranee

November 6, 2000 — HVS International — Club Mediterranee, the French tour operator, has seen its share price fall 30% to Euro 95, since it issued a profit warning last September, when it stated that at worst its operating profit may be 10% lower than first predicted.

According to analysts at BNP Pari-bas, further gloom may be ahead for Club Mediterranee. An increase in the supply of hotel accommodation for summer 2001 of between 6% and 7%, oil prices resulting in increased airfares, the slide of the Euro and fear of a Middle East crisis impacting on tourism are all possible contributory factors.

Furthermore, Club Mediterranee is increasingly considered to be a takeover target, following Preussag, the German tour operator's acquisition of Nouvelles Frontieres.

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