Global Resorts, an investment holding company controlled by Mr. Bonomi, said it had backed down an 18-month bidding war against Fosun—the longest public takeover battle in the French stock market's history—after concluding that the level of valuation reached was too high.
"The Club Med's shares held by Global Resorts will be handed over to Gaillon Invest II (which is controlled by Fosun), or sold on the market," Global Resorts said in a statement.
"We take note of the decision with satisfaction," a spokeswoman for Fosun said Friday evening.
The fight for the control of Club Med started in mid-2013, when Fosun made a first offer of €17 a share. The battle heated up early in 2014 when Mr. Bonomi disclosed that he had acquired a large stake in Club Med, which has vacation villages stretching from the Alps to the Dominican Republic.
The two groups have since made numerous bids and counterbids, often topping their rival by small amounts only.
The last move was made by Fosun, which had offered €24.6 in late December, outbidding Mr. Bonomi by €0.60 a share and valuing Club Med at €939 million.
France's stock-market regulator AMF had given Mr. Bonomi until Jan. 7 to file a counterbid.
France's stock-market regulator AMF had given Mr. Bonomi until Jan. 7 to file a counterbid.
In the battle between the Chinese and Italian-led bids, Club Med's Chief Executive Henri Giscard d'Estaing and its board have backed Fosun on several occasions.
Fosun, which has supported the French group's strategy to expand in Asia and China since 2010, already owns 18.4% of Club Med. Mr. Bonomi, via his Global Resorts investment vehicle, recently became Club Med's largest shareholder, with 18.9%.
Source: Wall Street Journal by Inti Landauro and Thomas Varela
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