The Caterer

Savoy owner may get new takeover bid

28 December 2005
Savoy owner may get new takeover bid

The corporate raider whose bid for Fairmont Hotels, owner of London's Savoy hotel, was rejected last week, says he may come back with a higher offer for the whole company.

Carl Icahn had put forward a $1.2b partial bid for 41% of Fairmont's share capital. But Fairmont's board of directors rejected the offer last week.

Now, in a letter sent to the directors yesterday, Icahn has said that he "may be in a position to make an offer for the entire company at a substantially increased price."

But this would depend on Icahn being given access to Fairmont's full financial details in order to conduct detailed "due diligence" research.

Icahn added: "We continue to believe that Fairmont is currently undervalued."

by David Shrimpton

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