Walt Disney rescues Euro Disney with $1.3B funding deal

Walt Disney Co. has come to the rescue of its loss-making subsidiary Euro Disney with a 1 billion-euro ($1.3 billion) funding deal announced on Monday, which could give the U.S. group total control over Europe's biggest tourist attraction.

Included in the deal is a rights issue and debt restructuring which would put 420 million euro into the Euro Disney group and eliminate 600 million euros of debt owed to Walt Disney Co. via an equity swap, according to Reuters.

Euro Disney is currently 40 percent owned by Walt Disney and 10 percent by the Saudi prince AlWaleed bin Talal. The rights issue will raise 351 million euros open to all shareholders but backed by Walt Disney, which will be required to make a tender offer for the whole company.

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