UPDATE: Accor Talking To Sodexo About Sale Of Lenotre

Accor SA (AC.FR) has entered exclusive talks with Sodexo SA (SW.FR) about a sale of Accor's upmarket catering business Lenotre at an enterprise value of EUR75 million, as the French hotel group sharpens its focus on its hotel business.

The sale will require approval from antitrust authorities, Accor said. The company will also hold a consultation process with workers.

In a press release, Sodexo said it views the acquisition as "a unique opportunity to develop its portfolio of activities in France and internationally."

Accor announced its intention to sell Lenotre in April, adding a month later that it would expect to keep working with the business after it is sold.

Accor has shed assets over the years to focus resources on its hotels business. In June 2010 it spun off its vouchers division, which is now a separately listed company called Edenred (EDEN.FR).

Stripped of its vouchers division, which funded the group's hotel expansion, Accor has turned to franchises and management contracts, selling off property owned outright and reducing the proportion of hotels paying fixed rent, making it less vulnerable to economic swings.

Lenotre has establishments in nine countries around the world offering pastries, chocolates, cakes and catering services.

Accor shares closed Thursday up 1.0% at EUR30.63, while Sodexo shares were flat at EUR54.41.

-By Inti Landauro and Michael Wright, Dow Jones Newswires; [phone]; [e-mail]

--Mimosa Spencer in Paris contributed to this article.