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Hesperia subscribes to NH Hoteles capital hike

Tue Jul 14, 2009 1:34pm EDT

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MADRID, July 14 (Reuters) - Spanish hotel chain Hesperia said on Tuesday it has subscribed to a capital hike of up to 225 million euros ($314.7 million) by rival NH Hoteles (NHH.MC) so as not to dilute its 25.09 percent stake.

"The hotel chain (Hesperia) has acquired a package of 24.7 million shares for 55.6 million euros in order to keep its key position within the shareholding of NH Hoteles," it said.

Hesperia is a core shareholder of NH Hoteles, but has been denied a seat on the chain's board.

At NH's AGM in June, Hesperia voted against the capital hike designed to raise capital to reduce debt levels, but the motion was passed by a majority of shareholders.

NH also plans to sell 300 million euros of assets so its level of debt does not breach covenants agreed with creditors. [ID:nLD652712] (Reporting by Paul Day; Editing by Rupert Winchester)



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