By Dominique Vidalon and Pascale Denis
PARIS (Reuters) - AccorHotels (PA:ACCP), Europe's largest hotel group, and top Chinese shareholder Shanghai Jin Jiang International <600754.SS> are talking about their relations but a satisfactory solution has yet to be found, Accor's chief executive said on Tuesday.
"We listen to each other. These discussions continue but we have not yet found the right solution to advance," Sebastien Bazin told shareholders.
Seeking to limit a push by Jin Jiang to increase its stake in the company, Accor started talks with Jin Jiang and other shareholders Eurazeo (PA:EURA) and Colony focused on board organisation and shareholdings, a source told Reuters in June.
Accor shareholders on Tuesday approved a plan to buy the owner of luxury hotels including London's Savoy and New York's Plaza, in a deal now worth $2.7 billion that will raise the U.S. profile of Europe's largest hotel group.
The deal includes a share issue which leaves the Qatar Investment Authority (QIA) with a 10.4 percent stake in Accor. Kingdom Holding (SE:4280), Saudi billionaire Prince Alwaleed bin Talal's investment company, will have 5.8 percent, Jin Jiang 12.6 percent, Colony-Eurazeo a combined 9.2 percent and Accor founders will hold 1.8 percent.
BOARD SEATSAccor is particularly concerned that state-owned Jin Jiang owns main French rival Louvre Hotels Group while it also competes in China with Accor's local partner China Lodging Group.
Chen Liming, Vice-President of Jin Jiang International, told reporters after the shareholders meeting that Jin Jiang "has not made up its mind yet" as to whether it would ask for Accor board seats.
Chen Liming stressed the benefits of cooperation in a subsequent e-mailed statement.
"Should we feel necessary, we shall discuss with the board so as to make more (of a) contribution to the company."
"We believe if two major hotel companies in Europe and Asia could join hands, our complimentary resources and advantages could be better leveraged to gain an edge in the fierce global competition. It is certainly of mutual benefits to both companies and countries," he added.
In a May 27 filing with French market watchdog AMF, Jin Jiang said it controlled 15.06 pct of Accor's capital and 13.15 pct of voting rights at that point but had no plans to seek control, though it did not rule out seeking board representation.
However French media reports in June that Jin Jiang could seek creeping control drove French President Francois Hollande to publicly say Accor should maintain a diverse group of shareholders.