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Firm launches $673 million bid

Monday, July 12, 1999 | 11:13 a.m.

COLUMBUS, Ohio -- Accor SA, the European lodging company that controls the Motel 6 chain, is offering to buy Red Roof Inns Inc. for about $673 million.

Under the deal announced today, Accor will be adding about 322 Red Roof hotels and more than 37,000 rooms mainly in the Midwest, East and South to its operations.

Accor said it plans to operate the Red Roof Inns and Motel 6 businesses as part of its economy lodging business with a combined total of more than 1,100 motels and 120,000 rooms.

Accor also operates the Novotel and Sofitel hotel groups in the United States. It has 130,000 employees at hotels, travel agencies, car rental companies and corporate service organizations in 140 nations.

Accor is offering to buy all 29.6 million Red Roof shares for $22.75 per share in cash. In addition, it will assume about $500 million in debt.

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