Méridien warns against sell-off delay

MANAGEMENT at Méridien Hotels have warned the French authorities that their indecision over the sell-off of Air France's 57% stake in the hotel group could damage the business.

An announcement had been expected to follow the airline's board meeting on 16 June, but it has not yet received any recommendation on the matter from the French government's privatisation commission.

Air France had asked the privatisation commission to examine rival bids from Accor and Forte, but it, in turn, chose to put the matter in the hands of the French finance ministry.

Méridien management, which favours the Forte bid, claims the delay is denting both the group's image and its value. A source there said management contracts on 15 hotels were in jeopardy as a result.

The issue may not be settled until the next scheduled board meeting in September, unless Air France calls a special board meeting in the interim.