French skiing conglomerates talking merger

Compagnie des Alpes is holding exclusive talks with Sofival and its main shareholders with the intent of combining the ski area management activities of the two groups.
PARIS —  Compagnie des Alpes is holding exclusive talks with Sofival and its main shareholders with the intent of combining the ski area management activities of the two groups.
    This combination may be in the form of an acquisition by Compagnie des Alpes of the Sofival holding company's ski area stake. This operation would be financed for the most part in cash and additionally by the issuing of new Compagnie des Alpes shares.
    If this merger is carried out, Sofival will become a significant shareholder in the Compagnie des Alpes, with shareholdings that could exceed 10 percent.
    With 3.7 million skier days and consolidated sales of 80 million euro in 2005, Groupe Sofival's ski areas (Val d'Isere, Avoriaz, Valmorel and La Rosiere) offer complementary qualities and dimensions to CDA's existing network of ski areas.         Any such merger is subject to approval by shareholders at the Compagnie des Alpes extraordinary general meeting and to authorization by French competition regulators.
    The two parties have decided to hold exclusive talks through Jan. 31.
    Further information will be made public during the coming weeks if these discussions lead to a firm agreement.
    Compagnie des Alpes is a major player in the field of leisure production in Europe. The company operates 35 leisure sites, including 14 leading ski areas located in the Alps (including Tignes, Les Arcs, La Plagne, les Menuires, Meribel) and 21 leisure parks (including Parc Asterix, Grevin, Walibi), in seven European countries: France, Italy, Switzerland, the Netherlands, Belgium, Germany and Great Britain.