PARIS — Efforts to form Europe's third-largest tourism company broke down today when officials of 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 SA, France's largest tourism and leisure company, had agreed to acquire a 34% stake in the French travel group Nouvelles Frontieres SA.
Nouvelles Frontieres Chairman Jacques Maillot said merger talks with Club Med President Gilbert Trigano will continue.
Trigano told a French radio station the break is not final and said time for reflection might lead to a new approach.
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 unit.