Club Details Strategy to Raise Capital

PARIS -- Club Mediterranee, owner of Club Med, announced it plans to sell securities to raise $198 million in new capital. Additionally, the firm said it will invest $240 million to finance an overhaul of the resort chain.

Philippe Bourguignon, chairman of the Club Mediterranee management board, said air-inclusive packages to certain Club Med villages would be "significantly reduced."

Also, the company plans to merge its 24 Aquarius villages into the Club Med line in April, he added. The company reported a $213 million loss in 1997.

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