Regal moves closer to a deal with MUI

Speculation is mounting that Regal Hotels is close to accepting a takeover bid by London Vista, a subsidiary of Malaysian United Industries (MUI).

Khoo Kay Peng, chairman of MUI, Regal's biggest shareholder, made a bid for the hotel group before Christmas through London Vista.

By 8 January it had received acceptances representing only 3.7 million shares, just 1.3% of the total, so shareholders were given an extra three weeks to accept or reject the bid.

By 29 January the offer had received acceptances representing 5.3m shares, 1.8% of the total, and the deadline was extended again to 16 February.

London Vista had until 2 February to increase its bid of 19.5p per share, which values the group at £75.7m. At the request of Regal and London Vista this deadline was suspended.

Both companies refused to comment on rumours that the deadline had been suspended because Regal's board is close to making a deal with London Vista.