Leisure/Hotels

Euro Disney restructuring just a bandaid

1 Jul 2004

The plan gives Euro Disney muchneeded breathing space, but it doesn t go far enough. Even after a E250m rights issue, its balance sheet will be far too stretched. It s hard to see why minority investors would sign up.

MGM hammers nail in league table coffin

16 Jun 2004

The casino group brazenly named its five financing banks as advisers in its $7.3bn Mandalay takeover, even though they did almost nothing. Companies are using deal credit to hack back their cost of capital. It renders the league tables meaningless and makes the banks look naive.

Las Vegas lights up with $7.7bn deal

7 Jun 2004

Kerkorian s MGM Grand has launched the biggestever hostile for another casino group, Mandalay. Is MGM about to burn a whole lot of money? At the offer price, he might squeak by with massive cost cuts. But the price is rising. MGM will need some extra tricks to avoid a burnout.

Benettons pull Autogrill sale

30 Apr 2004

Breaking off talks over the confidentiality agreement is an odd thing to do. The messy process doesn t make the family look good. Autogrill's stock has been soaring on hopes of a deal. If nothing happens, it has further to fall.

Donald Trump makes bad role model

1 Apr 2004

A hit US reality TV show has made the New York real estate developer one of the country's most admired businessmen. Yet judging by the health of his listed hotels and casino group, it would be tragic if Trump became a role model for US business.

Wembley bidding war kicks off

30 Mar 2004

US consortium BLB has trumped a recommended offer from MGM for the UK gaming firm with an 800p per share offer. But MGM has hit back rapidly by saying it may come back with an increased offer.

GPG in cheeky bid for De Vere stake

25 Mar 2004

The investor group says the UK hotels group is undervalued but it has launched a partial offer at market price. Investors should block its move. Letting GPG buy a controlling stake on the cheap isn't the best way to unlock value for all shareholders.

Autogrill investors should take a pit stop

16 Mar 2004

Hopes that the Benetton family might sell its 57% stake for a fat price have been boosting the roadside operator s shares. Similar partial buyouts in the past have made minority investors money. But this opportunity looks like a squeezed lemon.

InterContinental makes plans to spin off Britvic

11 Mar 2004

The UK hotel group doesn t need to be selling soft drinks. Spinning off the beverages group it inherited from Six Continents makes sense. InterContinental would also benefit from highlighting Britvic s valuation.

Lehman makes double-or-quits bet on Meridien hotels

30 Dec 2003

To salvage a £200m investment it made, the US bank is buying out all Meridien's other investors for a further £730m. That's a pretty big bet, so it had better know what it's doing.

MyTravel hits rock bottom

11 Dec 2003

The travel group lost £911m this year. On the bright side, it might survive another 12 months and maybe even make some money in 2005. But it's not yet a credible recovery story. It s hard to see why anyone would buy MyTravel over rival First Choice.

The reverse engineered IPO returns

4 Dec 2003

Collins Stewart has bought Center Parcs from private equity firm MidOcean Partners, and plans to float it immediately. With private equity funds hard pressed to return money to investors, this is looking like the new exit strategy.

Tui takes a break from travel woes

27 Nov 2003

With a good third quarter behind it, is Tui in a position to gobble up some of the many travel industry assets up for sale? Not unless it sells its logistics arm. But even then, Europe s largest tour operator faces serious competition from a new breed of rivals.

Lane Fox resigns as Lastminute breaks even

20 Nov 2003

It used to be said that the only thing managers of internet firms were good at was burning investors' cash. The travel website cofounder's decision will only strengthen this prejudice in the minds of some.

Punch buys Pubmaster for £1.2bn

6 Nov 2003

The UK tenanted pubs group has nearly doubled the size of its estate with the acquisition of its privately owned rival. With synergies more than covering the premium it is paying, Punch looks like it can drink a toast to consolidation of the pubs industry.

Mitchells & Butlers launches £1.9bn securitisation

9 Oct 2003

M&B is no longer a prime takeover target. It is now up to management to prove it can deliver value as an independent entity. This mammoth allcompany refinancing will allow the UK pubs group to hand back £500m in cash to shareholders £100m more than promised.

S&N sells pubs for £2.5bn to Spirit

6 Oct 2003

The sale exceeded expectations, creates a focused European brewer from a pubs conglomerate and underlines demand for UK pubs. But S&N already spent most of the proceeds. It will still be highly geared with a middling growth profile not too attractive for a bid.

TUI takeover speculation overblown

24 Sep 2003

West LB s 31% stake in Europe s largest tourism company is up for grabs. TUI s share price has shot up on takeover speculation. But TUI s debt load will deter many buyers. The chances are slim that minority shareholders will see a takeover premium come their way.

Film and TV set to be next victims of piracy

1 Sep 2003

Since 2000, the global music industry has shrunk 13% because it cannot protect its copyright against internet piracy. The TV and film industry is next in line for the online filesharing treatment. Could that put its growth into reverse, too?

UK hotels could be a good property play

27 Aug 2003

One answer lies in an ongoing review of UK taxation for property groups. Property tycoon Jack Petchey is building what look like trading stakes in struggling UK hotel chains. How can he make a turn?