Paris:  Accor SA, Europe's largest hotelier, aims to raise as much as 343 million euros ($449 million) by selling its stake in Groupe Lucien Barriere SA in an initial public offering that may be France's biggest this year.

Shares of Lucien Barriere, which is controlled by the Desseigne family, are selling yesterday at between 16.10 euros and 19.60 euros each, the Paris-based company said in a statement. That would value the casino operator, the biggest in France and Switzerland, at as much as 700 million euros.

Accor is selling its 49 per cent stake as it focuses on its main lodging business, the company said in a separate statement. Chief Executive Officer Gilles Pelisson in February estimated the value of the stake at 500 million euros to 700 million euros.

The proceeds from the stake sale are less than "the 500 million euros to 700 million euros previously indicated by management", Catherine Rolland, an analyst at Kepler Capital Markets in Paris, said in a note yesterday.

"The good news is that Accor finally succeeded in selling this stake."

Rolland maintained her "buy" rating.

Accor is selling hotels and disposing of other assets to cut debt. The company said in August that it will speed up disposals and reduce borrowings by as much as 650 million euros this year. Accor in July sold its Compagnie des Wagon-Lits onboard rail-catering operations after the spinoff of its Edenred voucher-services division.

Lucien Barriere, which runs 37 casinos and 14 luxury hotels, had net income of 1.9 million euros on sales of 1.06 billion euros in the year through October 2009.

BNP Paribas, Credit Agricole, Lazard-Natixis and Societe Generale are managing the IPO. Rothschild & Cie Banque is advising Accor. The stock offering runs until September 29 and shares may start trading in the French capital on October 1. The Desseigne family will keep its stake.

French retirement-home operator Medica sold about 293 million euros of stock in a February IPO, France's biggest so far this year.

Accor, Europe's biggest hotel operator and the owner of the Motel 6 and Sofitel brands, slipped 7.5 cents, or 0.3 per cent, to 26.16 euros in Paris at 12:24 p.m.

The stock has risen 5.3 per cent this year, giving the company a market value of about 6 billion euros.