Paris industry leaders rise to the top and stay there by taking risks, and French hotel giant Accor is no exception. These risks are always calculated, but even so, some fail to pay off. In the case of Accor acquiring a 28.9% stake in Paris-based Club Mediterranee, only time will tell, but after initial doubts, the investment is looking better. Synergies identified last year will contribute immediately to both companies' earnings, but will do so more significantly in the long term. Roughly 100 initiatives were identified in four major areas: Increasing revenues, optimizing purchasing, sharing skills and expertise and human resources. Net gains from these synergies are expected to total EUD17 million this year, EUD33 million in 2006 and EUD46 million in 2007.
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