Six Continents is ready to renew attempts to merge its pubs with Scottish & Newcastle, according to The Business newspaper.
The Business says it will make the move after it has finalised plans for the demerger of its pubs and hotels this autumn.
The company is expected to confirm the demerger at its trading update on Tuesday.
SixC is thought to favour a merger with S&N's pubs but S&N is unlikely to be happy with SixC chief executive Tim Clarke's involvement in the new business. Clarke is in line to head the demerged pubs operation.
Benchmark in The Business says chairman Sir Ian Prosser will have to move fast because S&N is in its own negotiations to sell part or all of its estate to Royal Bank of Scotland and wants to conclude a deal soon.
However, it says S&N shareholders would rather seek a pubs merger because it would yield more than a financial deal with Royal Bank.
The Financial Mail on Sunday says venture capital groups are lining up multi-billion pound bids for the 6C pubs arm. It says some analysts have suggested even 6C's remaining hotels business could attract bidders and lead to the break-up of the whole group.
The Sunday Telegraph says it understands no potential buyers for the demerged pubs and restaurants have signalled interest recently.
The City is not expecting good news on earnings on Tuesday.
Prosser will stand down as chairman of Six Continents at the end of 2003. The decision comes after intense pressure from shareholders.
Tuesday's update will confirm that Prosser will remain at the head of the hotels business to see it through the overhaul until next July.
The company is likely to say that a cash handout of up to £750m will have to wait until after the demerger.
The Business 29/09/02 page 3, page 33 (Best Of The Rest), page 34 (Benchmark)
The Sunday Telegraph 29/09/02 page 1 (Business)
Financial Mail on Sunday 29/09/02 page 14
The Business says it will make the move after it has finalised plans for the demerger of its pubs and hotels this autumn.
The company is expected to confirm the demerger at its trading update on Tuesday.
SixC is thought to favour a merger with S&N's pubs but S&N is unlikely to be happy with SixC chief executive Tim Clarke's involvement in the new business. Clarke is in line to head the demerged pubs operation.
Benchmark in The Business says chairman Sir Ian Prosser will have to move fast because S&N is in its own negotiations to sell part or all of its estate to Royal Bank of Scotland and wants to conclude a deal soon.
However, it says S&N shareholders would rather seek a pubs merger because it would yield more than a financial deal with Royal Bank.
The Financial Mail on Sunday says venture capital groups are lining up multi-billion pound bids for the 6C pubs arm. It says some analysts have suggested even 6C's remaining hotels business could attract bidders and lead to the break-up of the whole group.
The Sunday Telegraph says it understands no potential buyers for the demerged pubs and restaurants have signalled interest recently.
The City is not expecting good news on earnings on Tuesday.
Prosser will stand down as chairman of Six Continents at the end of 2003. The decision comes after intense pressure from shareholders.
Tuesday's update will confirm that Prosser will remain at the head of the hotels business to see it through the overhaul until next July.
The company is likely to say that a cash handout of up to £750m will have to wait until after the demerger.
The Business 29/09/02 page 3, page 33 (Best Of The Rest), page 34 (Benchmark)
The Sunday Telegraph 29/09/02 page 1 (Business)
Financial Mail on Sunday 29/09/02 page 14
