5 today with a near twothirds debt ratio

Eurazeo and Colony are now masters in them. In the space of eight months, two investment companies are truly established the resort as sent to change the governance group. Their investment dates back to May 2008. In funds, fashion is in the making of minority shareholdings in listed companies. May 5, Eurazeo and Colony, already shareholders in Accor concert at 10, announce their intention to climb to 30 of the capital by the end of the year. The course of Accor lost almost a third of its value in a few months. Eurazeo disburses EUR 1.1 billion to 8.5 of the capital with a debt of 50. Colony déboucle his side an equity swap"fitted for him by Credit Switzerland in December 2007. American Fund had invested EUR 1 billion in hybrid securities three years earlier. The two shareholders bound by a Pact for five years.

If the movement is friendly, the manoeuvre is not totally neutral. The concert would like to exercise its influence to boost course of Accor. Soon, rumours of transfers of assets flow, including the service pole. Patrick Sayer, Chairman of the Board of Eurazeo and spokesperson for the concert, finds that the value of this pole "is not reflected in stock market." To at the outset, Eurazeo asks two seats on the Board of Accor to align with Colony but only obtained one. A second seat should be attributed at the next General Assembly. Despite a real power of influence gained in Accor, the investment of the duo is nevertheless translated so far by a high valuation. The two companies have entered Accor to an average price of about 45 euros, according to figures given by Eurazeo mid-December, while it was around 30 euros yesterday. The tandem says that its investment is on the horizon of five years and table always on a course of 70 to 80 euros.

Fragile montages

Indeed, the decline in the markets has weakened all the fixtures of this type. Financing established in these operations are generally based on a debt between 50 and 75 of the value of the investment and guaranteed on the purchased shares. When they fall, borrowers must give the collateral to the lending bank to restore the debt ratio. Eurazeo thus paid 200 million euros of margin calls to its banks at the beginning of the year. But others are in the same case. In March 2007, Blue Capital, holding that brings together the interests of Bernard Arnault and Colony, came to the capital of Carrefour, which it has approximately 13.5 today, with a near two-thirds debt ratio. The course of the Distributor has been divided by two since. Six months later, the holding company Wendel entered the capital of Saint-Gobain, which it now owns 21.5. The course has been divided by more than three. A more delicate situation that the holdings as Eurazeo or Wendel are themselves very fragile stock market, their courses respectively lost more than 44 and 40 since the beginning of the year. Both are valued more than 1 billion euros. Colony is not listed.