Executives from Six Continents met Hugh Osmond and his team from Capital Management & Investment last night but failed to agree, as the two sides edged closer to war.
Earlier, in a clearly defensive move, SixC had issued a statement in which it raised the amount it said could be saved in its hotels business after its proposed demerger from the £65m it claimed last week to "at least £100m". It also said that a possible refinancing deal for the pubs side, changing plans for a £1.3bn debt facility and securitising revenues, could now "significantly increase" the £700m it had promised to return to shareholders.
Mark Finnie, an analyst at Deutsche Bank, said the announcement was "a complete volte-face on financing".
CMI, which is considering making a take-over offer for Six Continents, could not get SixC last night to postpone the EGM on March 12 which is meant to confirm a break-up of the group into two separate parts, covering hotels and pubs/restaurants.
SixC failed to get a firm statement out of CMI on what its bid might be, except, it said, " that it would include CMI shares and might include cash, possibly of a significant amount."
CMI said would be prepared to work with SixC "on a friendly basis" providing that Six Continents defer its EGM and provided information. SixC said it was "willing to talk constructively to anyone with a proposal which could be attractive to its shareholders and has a good prospect of being achieved".
After the meeting SixC said: "The board of Six Continents confirms its belief, particularly in the light of this development, that the demerger continues to represent the best method of maximising value for its shareholders."
CMI confirmed it was considering making a take-over offer for Six Continents and said it "proceeds on its timetable".
It said: "No way was found to move forward together [at the meeting] and CMI was advised that Six Continents had received other approaches which Six Continents had treated in the same manner." t
Osmond said: "It is sad, but perhaps not surprising, that Six Continents has given this response. It has several times seemed to say it would be changing; but rebuff to others remains their way."
Earlier, in a clearly defensive move, SixC had issued a statement in which it raised the amount it said could be saved in its hotels business after its proposed demerger from the £65m it claimed last week to "at least £100m". It also said that a possible refinancing deal for the pubs side, changing plans for a £1.3bn debt facility and securitising revenues, could now "significantly increase" the £700m it had promised to return to shareholders.
Mark Finnie, an analyst at Deutsche Bank, said the announcement was "a complete volte-face on financing".
CMI, which is considering making a take-over offer for Six Continents, could not get SixC last night to postpone the EGM on March 12 which is meant to confirm a break-up of the group into two separate parts, covering hotels and pubs/restaurants.
SixC failed to get a firm statement out of CMI on what its bid might be, except, it said, " that it would include CMI shares and might include cash, possibly of a significant amount."
CMI said would be prepared to work with SixC "on a friendly basis" providing that Six Continents defer its EGM and provided information. SixC said it was "willing to talk constructively to anyone with a proposal which could be attractive to its shareholders and has a good prospect of being achieved".
After the meeting SixC said: "The board of Six Continents confirms its belief, particularly in the light of this development, that the demerger continues to represent the best method of maximising value for its shareholders."
CMI confirmed it was considering making a take-over offer for Six Continents and said it "proceeds on its timetable".
It said: "No way was found to move forward together [at the meeting] and CMI was advised that Six Continents had received other approaches which Six Continents had treated in the same manner." t
Osmond said: "It is sad, but perhaps not surprising, that Six Continents has given this response. It has several times seemed to say it would be changing; but rebuff to others remains their way."
