Six Continents ready for flood of offers

Six Continents has established an independent committee of directors to deal with the anticipated flood of bids from prospective buyers following its decision to demerge its hotel and pubs division last Wednesday.

The company has set a date of 15 April for a proposed demerger.

Strategic Hotel Capital, the Chicago-based hotel investment group, is understood to be viewing the hotel arm of Six Continents.

The investment group already has links with Six Continents, as its portfolio of 24 hotels includes the company's InterContinental in Prague.

CVC Capital Partners also confirmed that it was in discussions with a number of private equity and hotel groups last week and is likely to make a bid. The proposed consortium is believed to include Marriott as well as Texas Pacific Group, the US buyout firm.

Starwood has also been linked to the bid but refused to comment, although a spokesperson admitted that the company was looking at all available deals.

Hugh Osmond's Capital Management and Investment (CMI) allowed its bid to lapse following Six Continents' shareholder vote to demerge, but Osmond said that he had not completely ruled out the possibility of bidding for the pubs division.

"It is still on our list of targets," he said. "There are many companies that are relatively cheap and we are considering lots of things."

A spokesman for CMI said that currently there was not much enthusiasm for a further bid. The lost bid cost the group about £8.5m.

Other private equity groups believed to be interested include Blackstone, which is rumoured to be teaming up with US firm Kohlberg Kravis Roberts to make an offer.