Gresham talks back on after improved bid

Irish hotel group Gresham has agreed to continue takeover discussions with a consortium of investors after it upped its offer for the company.

The trio of Irish investors have increased their offer from €1.35 (92p) to €1.45 (99p) per share, valuing Gresham at €115m (£79m) instead of €107m (£73m).

Gresham said the revised approach did not constitute a firm intention to make an offer for the group, but if a bid were made it would be conditional on receiving at least 80% acceptance from shareholders.

Both Gresham and the consortium of investors, thought to include one Irish hotelier, intend to make an announcement about a firm offer by the end of March.

The consortium first approached Gresham in November 2003 but has met several stumbling blocks along the way in relation to its offer price and preconditions for the bid.