Six Continents is heading for a potentially stormy meeting on Wednesday morning when its shareholders gather to decide on whether to demerge the group into separate pubs and hotels companies, with bidder Hugh Osmond likely to demand a postponement of the vote.
As a possible "white knight" bid from the venture capital company CVC appeared on the horizon, Osmond insisted: "A vote against Six Continents' demerger proposals is a vote for choice."
Osmond said he expects to speak at Wednesday's meeting at the Queen Elizabeth II conference centre in Westminster to shareholders who are still undecided or likely to change their mind.
He said: "I suspect quite a number of shareholders will turn up on the day to see what happens. The motion to adjourn has to be the first item on the agenda and I dare say there will be some talking on that point. It will be interesting to see the turnout."
A CVC insider was quoted by the Daily Telegraph this morning as saying: "I can confirm that we are preparing a bid with Starwood and Marriott. It would only be on a friendly basis."
Six Continents said: "No other party has asked us to delay the EGM. No one other than CMI has come forward with a proposal for the whole group. We believe the demerger opens up more choices for our shareholders.
"Since we announced we would demerge, most major hotel companies and venture capitalist groups have contacted Six Continents. The approaches have been consistent - they have been friendly and supportive of management."
However, one analyst said that whatever happened SixC would not survive beyond six months at most.
SixC plans to close its headquarters in North Audley Street, in the West End of London, as part of its attempt to cut costs ahead of its break-up. It wants to show it can strip out £100m a year as part of its defence against Osmond's bid. The offices will move to Windsor.
It has also started a redundancy programme in the United States and it is looking to make further job cuts in the UK and across Europe.
Six Continents shares closed down 20.5p on Friday at 584p.
As a possible "white knight" bid from the venture capital company CVC appeared on the horizon, Osmond insisted: "A vote against Six Continents' demerger proposals is a vote for choice."
Osmond said he expects to speak at Wednesday's meeting at the Queen Elizabeth II conference centre in Westminster to shareholders who are still undecided or likely to change their mind.
He said: "I suspect quite a number of shareholders will turn up on the day to see what happens. The motion to adjourn has to be the first item on the agenda and I dare say there will be some talking on that point. It will be interesting to see the turnout."
A CVC insider was quoted by the Daily Telegraph this morning as saying: "I can confirm that we are preparing a bid with Starwood and Marriott. It would only be on a friendly basis."
Six Continents said: "No other party has asked us to delay the EGM. No one other than CMI has come forward with a proposal for the whole group. We believe the demerger opens up more choices for our shareholders.
"Since we announced we would demerge, most major hotel companies and venture capitalist groups have contacted Six Continents. The approaches have been consistent - they have been friendly and supportive of management."
However, one analyst said that whatever happened SixC would not survive beyond six months at most.
SixC plans to close its headquarters in North Audley Street, in the West End of London, as part of its attempt to cut costs ahead of its break-up. It wants to show it can strip out £100m a year as part of its defence against Osmond's bid. The offices will move to Windsor.
It has also started a redundancy programme in the United States and it is looking to make further job cuts in the UK and across Europe.
Six Continents shares closed down 20.5p on Friday at 584p.
