France’s AccorHotels to buy Chile hotel group Atton for $105 million

AccorHotels, whose portfolio ranges from upmarket brands such as Sofitel to the Mercure and Ibis brands, expects the Atton deal to be completed in the second half of this year. (Reuters)
Updated 14 May 2018
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France’s AccorHotels to buy Chile hotel group Atton for $105 million

PARIS: French group AccorHotels has agreed to buy the management company behind Chile’s Atton Hoteles for around $105 million, in a deal which AccorHotels said would boost its earnings and strengthen its position in Latin America.
The Atton Hoteles deal marks the latest example of AccorHotels’ ambitious takeover plans and follows its acquisition last month of Movenpick Hotels.
AccorHotels will acquire 100 percent of the management company that operates 11 Atton hotels across Chile, Peru, Colombia and Florida in the US.
AccorHotels will also buy 20 percent of the property company that owns these assets, with the remaining 80 percent being bought by Chilean company Algeciras. AccorHotels will also have an option to sell its 20 percent in that property company to Algeciras after five years.
AccorHotels, whose portfolio ranges from upmarket brands such as Sofitel to the Mercure and Ibis brands, expected the Atton deal to be completed in the second half of this year.
The French group said the Atton takeover would boost its earnings from the first year of the deal being completed.
“With Atton’s portfolio, AccorHotels will strengthen its leadership position in Latin America and complement its offer to its customers and loyalty members with attractive key destinations,” said Patrick Mendes, AccorHotels’ South America chief executive, in a statement.
Previous acquisitions under AccorHotels’ chief executive Sebastien Bazin, who took over in 2013, include London’s Savoy Hotel, The Plaza in New York, the Raffles Hotel in Singapore and Australian hotel group Mantra.


US intelligence says Huawei funded by Chinese state security: report

Updated 55 min 31 sec ago
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US intelligence says Huawei funded by Chinese state security: report

  • The accusation comes at a time of trade tensions between Washington and Beijing
  • Huawei dismissed the allegations

US intelligence has accused Huawei Technologies of being funded by Chinese state security, The Times said on Saturday, adding to the list of allegations faced by the Chinese technology company in the West.
The CIA accused Huawei of receiving funding from China’s National Security Commission, the People’s Liberation Army and a third branch of the Chinese state intelligence network, the British newspaper reported, citing a source.
Earlier this year, US intelligence shared its claims with other members of the Five Eyes intelligence-sharing group, which includes Britain, Australia, Canada and New Zealand, according to the report.
Huawei dismissed the allegations in a statement cited by the newspaper.
“Huawei does not comment on unsubstantiated allegations backed up by zero evidence from anonymous sources,” a Huawei representative told The Times.
The company, the CIA and Chinese state security agencies did not respond immediately to requests for comment.
The accusation comes at a time of trade tensions between Washington and Beijing and amid concerns in the United States that Huawei’s equipment could be used for espionage. The company has said the concerns are unfounded.
Authorities in the United States are probing Huawei for alleged sanctions violations.
Meng Wanzhou, Huawei’s chief financial officer and daughter of its founder, Ren Zhengfei, was arrested in Canada in December at the request of the United States on charges of bank and wire fraud in violation of US sanctions against Iran.
She denies wrongdoing and her father has previously said the arrest was “politically motivated.”
Amid such charges, top educational institutions in the West have recently severed ties with Huawei to avoid losing federal funding.
Another Chinese technology company, ZTE Corp. , has also been at the center of similar controversies in the United States.
US sanctions forced ZTE to stop most business between April and July last year after Commerce Department officials said it broke a pact and was caught illegally shipping US-origin goods to Iran and North Korea. The sanctions were lifted after ZTE paid $1.4 billion in penalties.
Reuters reported earlier this week that the United States will push its allies at a meeting in Prague next month to adopt shared security and policy measures that will make it more difficult for Huawei to dominate 5G telecommunications networks.