Thistle sell-off could block Brierley's hostile bid

Thistle Hotels is expected to sell six London hotels to raise £600m to head off a hostile £554.7m bid from its majority shareholder, Brierley Investments (BIL). The properties include the five-star Royal Horseguards, the Thistle Tower and the Thistle Marble Arch hotels.

The Thistle board has unanimously rejected the offer of 115p a share from BIL, which already owns a 46% stake in the company. "This offer is opportunistic and at a wholly inadequate premium," said chairman David Newbigging.

BIL, which bought Thistle forerunner Mount Charlotte Investments in 1991, said the group had not performed to its full potential since it was floated on the London Stock Exchange in 1996. Its bid came the day after Thistle reported falls in turnover and profits in 2002 of 38% and 43% respectively.

Source: Caterer & Hotelkeeper magazine, 13-19 March 2003