Europe’s biggest hotel operator is considering acquiring a minority stake in Air France-KLM, becoming the anchor investor in the French airline as it struggles to contain a bitter and costly labor dispute.
The prospect of Accor SA, operator of the Raffles, Sofitel, Mercure and Ibis brands, swooping in to buy the French government’s 14.3 per cent stake sent shares in Air France-KLM surging as much as 7.4 per cent on Monday. Accor stock slumped, with analysts at Sanford C Bernstein & Co saying the deal may be risky for the hotel owner based in Issy-les-Moulineaux, France.
“Air France-KLM currently has no CEO, no evident strategy to solve its labor crisis, and is highly exposed to rising fuel prices,” analysts including Richard Clarke said in a note. “While the strategic rationale for Accor is there, we wonder why this cannot be achieved by a commercial partnership.”
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