AccorHotels bids for Mantra

Sydney: France´s AccorHotels has made a Aus$1.17 billion (US$910 million) bid for one of Australia´s biggest hotel operators, the Mantra Group, the local company said Monday in a move that sent its share price soaring.

Mantra, which operates more than 20,000 rooms in Australia, New Zealand and Indonesia, said it had received an offer of Aus$3.96 cash per share, valuing the firm at Aus$1.17 billion.

"Mantra has granted Accor access to due diligence to determine if a transaction can be agreed and recommended unanimously by the Mantra board," the Australian-listed company said in a statement.

"The discussions are incomplete and any entry by the parties into binding transaction documents remains subject to a number of conditions." The conditions include regulatory approval and support for the proposal by the firms´ boards.