Leisure/Hotels

Blow to Tchenguiz Spirit bid as S&N pulls out

23 Nov 2005

The property tycoon hoped to sell about half the UK pub group to S&N. Now he needs a new solution. Spirit must now choose between Tchenguiz, who is the highest bidder but may need more time, and Punch, who could close a deal immediately.

Empire’s threats to Partygaming look desperate

21 Nov 2005

Friendly takeover talks between the gambling websites have collapsed. Now Empire is talking about suing its suitor and largest customer. Both companies remain below their float prices, but Empire s more so. Reaching for the lawyers looks like sour grapes.

Can creeping takeovers be a good thing?

18 Nov 2005

The gut reaction is never. But like all matters in the area of corporate governance, each case must be considered on its individual merits. On that basis, for example, a bid to control theme parks operator Six Flag is a good thing. Santander s bid for a chunk of Sovereign is not.

Eircom deal would be expensive fix for Swisscom

3 Nov 2005

A takeover of the Irish telecoms company would give Swisscom the debt it wants to spice up its balance sheet. But a deal offers few others benefits. Swisscom would pay richly for weak returns.

Spirit raises the bar for bidders

19 Oct 2005

Strong quarterly sales suggest the privateequity owned UK pub group has turned the corner after a slip earlier this year. This will significantly strengthen its hand in negotiations with prospective bidders, who now have until midNovember to put up or shut up.

Huge upside for Hilton from hotel sale

14 Oct 2005

If the UK leisure group gets anywhere near £3.6bn from selling its hotels to HHC, it suggests Hilton shares are substantially undervalued. What s more, it could signal a new willingness by US hotel groups to expand internationally, paving the way for more hotel sector bids.

Sportingbet shows online poker’s not dead

12 Oct 2005

The online gambling group says poker is booming even in the US, where rival Partygaming said the market was putting on the brakes. That shows there's still value in gaming stocks that are diversified and well run. It should now be easier to sort the wheat from the chaff.

Accor fudges nepotism row

11 Oct 2005

The French hotel group has shoehorned the nephew of a cofounder into the top executive slot. He wasn't obviously the best choice. The silver lining is that the founders have agreed to an outside chairman and AngloSaxon style board. Not perfect, but better than nothing.

Empire Online deals fresh blow to gaming investors

10 Oct 2005

The online gambling group says market growth is flattening. Meanwhile, its major partner seems to be reducing its dependence on Empire. But the shares reaction seems overdone. Empire s results suggest it s growing faster and attracting better customers than Partygaming.

Gala plans risky bet on Coral

30 Sep 2005

The UK bingo operator's private equity owners hope to extend their gaming sector winning streak with a bid for the UK betting shop chain. But with few synergies to justify paying a premium, Gala will have to take a big gamble to derail Coral's planned IPO.

Deutsche gets punchy return from Fitness First

22 Sep 2005

The fund manager kept a 10% stake when Cinven took the UK gym chain private in 2003. Now it will make a roughly 80% return. That s a tidy victory. But being a minority in an unlisted company is risky. For private equity, holdouts are more a nuisance that a threat.

888.com hacks IPO range by 20%

15 Sep 2005

The online casino group is ploughing on with its IPO despite Partygaming's profit warning last week, which slashed sector valuations. 888 will have to convince investors that Partygaming's problems were largely selfinflicted. That will be tough, but not impossible.

Intercontinental sets tough growth targets

8 Sep 2005

The UK hotel group has delivered huge returns to shareholders, including another £250m share buyback. But that process is nearly complete. Now it must prove its franchises can deliver the promised growth. That depends on its ability to sell the model to European hotel owners.

Partygaming results spook investors

6 Sep 2005

The online poker giant admits market growth is slowing, and players are spending less time and money online. True, the market could still grow almost 60% this year. But these results should give investors a muchneeded reality check.

Spirit auction becomes fractious

5 Sep 2005

The UK pub group denies shareholders and management are at war . But bidders accuse Spirit s management of frustrating the auction process. Spirit has failed to supply details of its leasehold properties. Given Spirit s complex financial structure, this is crucial information.

Sportingbet won’t win Empire without a fight

5 Sep 2005

The UK betting operator's offer for the internet gaming group values it at 14 times this year's earnings a 54% premium to its float price. But other big gaming sites are unlikely to sit by and watch Sportingbet snap Empire up. A fierce auction may be on the cards.

888.com seeks £800m IPO

1 Sep 2005

The internet poker site hopes to emulate Partygaming, whose shares are up 22% since its June IPO. The odds look good. True, most leading investment banks won t touch the sector. But investors are still drawn to online gambling s stellar growth rates.

Gala’s private equity owners strike it lucky

19 Aug 2005

Cinven and Candover have doubled the £550m they invested into the bingo operator in two and a half years. Why? Gaming is a great place to be right now. And low interest rates mean its stable cashflows can support huge leverage.

How much is Spirit worth?

6 Jul 2005

After a weak Q2, the UK managed pub group posted modest growth in Q3, although ebitda is still running below last year's pro forma figure. But that doesn t help in valuing Spirit, as it only covers half the estate. And there's the added complication of two sale and leasebacks.

Has Deutsche got one over on private equity?

29 Jun 2005

The fund manager may have doubled its money by hanging on as an unwelcome minority in Cinven s buyout of Fitness First. But though Deutsche seems to have enjoyed a free ride at Cinven s expense, it s not quite the freebie it appears.