Hugh Osmond will launch a bid for Six Continents through his takeover vehicle, Capital Management and Investment (CMI), as early as today (Monday), according to the Sunday Telegraph, and by Friday according to the Sunday Times, which says he will pledge to return £1.5 billion to shareholders.
The value of the prospective bid is valued at anything from £5.5bn to £8bn in the Sunday press.
But Hilton Group could thwart his plans: The Sunday Telegraph says Hilton is already drawing up plans to launch a white knight bid to create an £8bn global hotels group.
Kohlberg Kravis Roberts is considering a counter-bid for Six Continents (SixC) if Hugh Osmond makes a hostile offer, the Financial Times reports.
The newspaper says senior KKR partners were thought to have approached SixC chairman Sir Ian Prosser at the World Economic Forum earlier this month with a tentative proposal that it could act as a white knight should the pubs and hotels group face a hostile bid.
The Observer says that Kohlberg Kravis Roberts has joined forces with Blackstone for a possible £8bn bid. The Sunday Telegraph says Blackstone has linked with PAI to create a new vehicle to launch a joint bid should the SixC demerger proceed. The Financial Times says two other ventuire capital groups, CVC and Permira, are thought to have talked to Osmond.
The Financial Mail on Sunday says SixC advisers privately admit the company is planning to postpone its extraordinary general meeting on March 12 which had been set to seek shareholder approval to demerge the pubs and restaurants from the hotels.
The Times and The Daily Telegraph say one of the latest companies to declare an interest in buying some of the hotels if the portfolio is broken up is Strategic Hotel Capital, of the United States. The Daily Telegraph says Starwood also said it would be interested in the hotels.
The SixC hotel owners' association warned that franchisees would "consider terminating licence agreements", if the hotels were broken up.
Hugh Osmond will offer shareholders all-paper and cash-and-shares alternatives in what promises to be the start of a long battle. CMI will transfer its listing from the Alternative Investment Market to the London Stock Exchange to facilitate paper in the bid vehicle. Osmond is expected to promise an immediate shareholder payout of up to £1.5bn.
The postponement of SixC's extraordinary shareholder meeting to approve the demerger will be a condition of the offer. CMI plans to sell the group's hotels properties, leasing back the sites and securitising revenues from the pubs and restaurants.
Advisers close to CMI suggest Osmond will win investors' confidence because of "formidable backing and guarantees" he has secured from banks and specialists extending bridging facilities and principal finance.
Marriott and Starwood could still decide they would like Intercontinental Hotels for themselves and there is nothing to stop them making bids independently of Osmond.
The Sunday Telegraph says people close to the Hilton preparations believe the biggest sticking point is what might happen to SixC's American hotels in the event of a Hilton merger. It says a sale of the American hotels may be considered the simplest way of appeasing American competition regulators and complying with a non-compete clause which Hilton has with its American counterpart, Hilton Corporation. Hilton would have no shortage of buyers for the American hotels.
Sir Ian Prosser, SixC's chairman was forced to make an embarrassing climbdown on Friday over claims about financial performance, says The Times. Sir Ian admitted the company had made an error in a statement on Thursday in which it claimed to have "outperformed the FTSE100 over the past one, two, three, five and ten years" in terms of total shareholder returns.
Osmond said: "It's hugely amusing. It's their first statement, and they get it wrong."
SixC has asked its adviser, Schroder Salomon Smith Barney, to put David Wormsley, one of its biggest-hitting investment bankers on its defence team
Osmond's bid planning was temporarily disrupted this weekend when it emerged he had a controversial share-option package in CMI featuring "exploding warrants" which entitle Osmond and four co-directors to 12% of the group's issued capital. However, it is thought they will now draw up a new incentive plans which will be similar to venture capital returns.
SixC is working on fresh plans to raise money through securitisation programmes.
Jason Nisse, in The Independent On Sunday, says Osmond will end up being a stalking horse for a real bid from the likes of Marriott, Starwood or Hilton, unless he can pull a rather large rabbit out of his hat this week. Nisse concedes, however, he could end up getting the pubs if he wants them.
Frank Kane, in The Observer, says Osmond's unorthodox approach looks as though it might well succeed at the first attempt.
The Times 22/02/03 page 51, page 54, page 55 (Commentary)
Financial Times 22/02/03 page 1, page 12, page 13 (Lombard), page 14
The Daily Telegraph 22/02/03 page 27
The Business 23/02/03 page 1, page 15, page 30
The Sunday Times 23/02/03 page 1, page 5 (Business)
The Sunday Telegraph 23/02/03 page 1 (Business), page 3 (Comment), page 6
The Independent on Sunday 23/02/03 page 2 (Business – Business View), page 3 (Business)
The Observer 23/02/03 page 1 (Business), page 2 (Business – Business Comment), page 12 (Business)
Financial Mail on Sunday 23/02/03 page 2 (Business)
The value of the prospective bid is valued at anything from £5.5bn to £8bn in the Sunday press.
But Hilton Group could thwart his plans: The Sunday Telegraph says Hilton is already drawing up plans to launch a white knight bid to create an £8bn global hotels group.
Kohlberg Kravis Roberts is considering a counter-bid for Six Continents (SixC) if Hugh Osmond makes a hostile offer, the Financial Times reports.
The newspaper says senior KKR partners were thought to have approached SixC chairman Sir Ian Prosser at the World Economic Forum earlier this month with a tentative proposal that it could act as a white knight should the pubs and hotels group face a hostile bid.
The Observer says that Kohlberg Kravis Roberts has joined forces with Blackstone for a possible £8bn bid. The Sunday Telegraph says Blackstone has linked with PAI to create a new vehicle to launch a joint bid should the SixC demerger proceed. The Financial Times says two other ventuire capital groups, CVC and Permira, are thought to have talked to Osmond.
The Financial Mail on Sunday says SixC advisers privately admit the company is planning to postpone its extraordinary general meeting on March 12 which had been set to seek shareholder approval to demerge the pubs and restaurants from the hotels.
The Times and The Daily Telegraph say one of the latest companies to declare an interest in buying some of the hotels if the portfolio is broken up is Strategic Hotel Capital, of the United States. The Daily Telegraph says Starwood also said it would be interested in the hotels.
The SixC hotel owners' association warned that franchisees would "consider terminating licence agreements", if the hotels were broken up.
Hugh Osmond will offer shareholders all-paper and cash-and-shares alternatives in what promises to be the start of a long battle. CMI will transfer its listing from the Alternative Investment Market to the London Stock Exchange to facilitate paper in the bid vehicle. Osmond is expected to promise an immediate shareholder payout of up to £1.5bn.
The postponement of SixC's extraordinary shareholder meeting to approve the demerger will be a condition of the offer. CMI plans to sell the group's hotels properties, leasing back the sites and securitising revenues from the pubs and restaurants.
Advisers close to CMI suggest Osmond will win investors' confidence because of "formidable backing and guarantees" he has secured from banks and specialists extending bridging facilities and principal finance.
Marriott and Starwood could still decide they would like Intercontinental Hotels for themselves and there is nothing to stop them making bids independently of Osmond.
The Sunday Telegraph says people close to the Hilton preparations believe the biggest sticking point is what might happen to SixC's American hotels in the event of a Hilton merger. It says a sale of the American hotels may be considered the simplest way of appeasing American competition regulators and complying with a non-compete clause which Hilton has with its American counterpart, Hilton Corporation. Hilton would have no shortage of buyers for the American hotels.
Sir Ian Prosser, SixC's chairman was forced to make an embarrassing climbdown on Friday over claims about financial performance, says The Times. Sir Ian admitted the company had made an error in a statement on Thursday in which it claimed to have "outperformed the FTSE100 over the past one, two, three, five and ten years" in terms of total shareholder returns.
Osmond said: "It's hugely amusing. It's their first statement, and they get it wrong."
SixC has asked its adviser, Schroder Salomon Smith Barney, to put David Wormsley, one of its biggest-hitting investment bankers on its defence team
Osmond's bid planning was temporarily disrupted this weekend when it emerged he had a controversial share-option package in CMI featuring "exploding warrants" which entitle Osmond and four co-directors to 12% of the group's issued capital. However, it is thought they will now draw up a new incentive plans which will be similar to venture capital returns.
SixC is working on fresh plans to raise money through securitisation programmes.
Jason Nisse, in The Independent On Sunday, says Osmond will end up being a stalking horse for a real bid from the likes of Marriott, Starwood or Hilton, unless he can pull a rather large rabbit out of his hat this week. Nisse concedes, however, he could end up getting the pubs if he wants them.
Frank Kane, in The Observer, says Osmond's unorthodox approach looks as though it might well succeed at the first attempt.
The Times 22/02/03 page 51, page 54, page 55 (Commentary)
Financial Times 22/02/03 page 1, page 12, page 13 (Lombard), page 14
The Daily Telegraph 22/02/03 page 27
The Business 23/02/03 page 1, page 15, page 30
The Sunday Times 23/02/03 page 1, page 5 (Business)
The Sunday Telegraph 23/02/03 page 1 (Business), page 3 (Comment), page 6
The Independent on Sunday 23/02/03 page 2 (Business – Business View), page 3 (Business)
The Observer 23/02/03 page 1 (Business), page 2 (Business – Business Comment), page 12 (Business)
Financial Mail on Sunday 23/02/03 page 2 (Business)
