European Tourism Merger Talks Stall: Efforts to...

European Tourism Merger Talks Stall: Efforts to form Europe’s third-largest tourism firm broke down when the two firms involved, Club Med and the air charter group, Nouvelles Frontieres, backed away from a preliminary agreement reached in April. Under that accord, Club Mediterranee S.A., France’s largest tourism and leisure company, had agreed to acquire a 34% stake in the French travel group Nouvelles Frontieres S.A. According to both sides there was disagreement on two points--a sale agreement Club Med has with the travel unit of the French media group Havas and establishment of a joint airline. However, a spokesman for Nouvelles Frontieres said merger talks would continue.