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Colony Capital ups its French bets, sees Hollande shift

Colony Capital, the $27 billion U.S. investment fund attracting controversy in France over its involvement in Carrefour and Accor, will invest up to $2 billion in Europe on a bet the business climate will soon improve.Colony's chief executive Thomas Barrack said the firm would allocate $1.3 to $2billion investment in France, Italy and Spain over the next eighteen months, aiming to fill a funding gap left by banks which must now comply with new Basel III regulation demanding higher levels of capital.Barrack said the business community's anxiety over Socialist President Francois Hollande reminded him of unfounded worry about Francois Mitterrand's initial moves to nationalize banks - ultimately followed by shift to the center after the French franc came under heavy selling pressure.Hollande is perceived as anti-business because of a widely publicized campaign speech in which he referred to finance as "the enemy," his introduction of tax rules that have cut profits in private equity deals ...

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