Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, June 2, 1994 TAG: 9406020075
SECTION: BUSINESS PAGE: C-7 EDITION: METRO
SOURCE: Associated Press
DATELINE: BURBANK, CALIF. LENGTH: Medium
The investment by Prince Al-Waleed Bin Talal Bin Abdulaziz Al Saud includes a commitment to build a convention center to attract more business visitors to the park.
The 37-year-old American-educated prince is a nephew of King Fahd. He has attracted attention in the past for his investments in other famous U.S. companies.
In 1991, he bought a 14.88 percent stake in Citicorp for about $800 million, making him the largest individual shareholder of the largest U.S. bank. Two years later, he bought 11 percent of Saks Fifth Avenue, the posh New York City department store.
Al-Waleed has agreed to buy 13 percent to 24 percent of Euro Disney through a new stock offering that's a central component in a bailout for the debt-riddled attraction near Paris.
Euro Disney is offering its shareholders the chance to buy 90 million shares of new stock, with proceeds from the offering estimated at 5.84 billion French francs, or about $1.04 billion.
Al-Waleed will buy from either the 51 percent offered to shareholders or the 49 percent offered to Walt Disney Co., which already owns 49 percent of the park.
The prince also will provide a three-year financial commitment of $100 million for a convention center being considered near the park. Disney said in a statement that the convention center should help draw additional visitors, especially midweek and off-season.
Since opening more than two years ago, Euro Disney has accumulated a debt totaling $3.7 billion, despite its becoming the most popular short-destination resort in Europe. Park operators blame a European recession and miserly visitors for Euro Disney's woes.
by CNB