Hyatt recedes NH Hotels offer in Spain facing a minor stake

MADRID (Reuters) – Hyatt Hotels ( HN ) gave up a bid for NH Hotels ( NHH.MC ) a few days after a minor competitor ( )] MINT.BK ) revealed that he controlled 44 percent of the Spanish group.

In a letter from Hyatt published on the Spanish title The American hospitality company NH, which announced Friday that it could launch a cash offer for 100% of NH, said that the continuation of this offer was extremely difficult.

"Based on the information currently available to us, we believe that the path to a successful Hyatt bid under the terms expressed in our letter has narrowed to the point where become unachievable, "said Hyatt President and CEO Mark Hoplamazian. in the letter published Monday.

Minor International, based in Thailand, made an offer in June that upgraded NH to 2.5 billion euros (2.9 billion dollars).

Minor already owns 29.8% with agreements in place to buy the 8.4% stake in Chinese conglomerate HNA and the 5.7% stake in Oceanwood Capital Management. He said Friday night that he was controlling 44% of NH's capital.

NH shares fell 6.4% Monday to 6.3 euros per share, slightly below Minor's offer price.

NH, with more than 370 hotels in 30 countries, declined in January a public tender offer from its Spanish counterpart Barcelo who valued the company at $ 2.48 billion. euros.

Minor had agreed to pay HNA 622 million euros for a 26.5% stake in the hotel group, raising its stake to about 38% after the conversion of some bonds into shares. He would then offer 6.4 euros for each remaining action, he said.

NH said that the offer of Minor, approved by the Spanish and Portuguese competition supervisory authorities, undervalued the company.

Spain, by far the largest NH market with about a third of its hotels, has become the second most visited country in the world after France in 2017, surpassing the United States.

($ 1 = 0.8572 euros)