Leisure/Hotels

NH Hoteles beats back bid

6 Aug 2003

The Spanish hotelier may claim victory at the failure of Hesperia's cheeky bid. But it's not quite a win for minority shareholders' rights. The bank shareholders who could have tipped the balance to Hesperia simply weren't offered juicy enough incentives to sell their stakes.

EuroDisney heads for restructuring

5 Aug 2003

The theme park company is set to breach covenants and wants to talk to its creditors about refinancing. This is just a return to problems EuroDisney's 1994 restructuring fudged: its balance sheet needs to decisively shrink to fit reality.

Hands’ rescue plan exploits Le Meridien structure

23 Jul 2003

RBS is backing the private equity guru s £150m rescue plan for the luxury hotels group. That may be enough to put Hands back on top. The other lenders are still mulling other alternatives. But they would face even bigger losses if the company gets put into administration.

Russian tycoon buys Chelsea football club

2 Jul 2003

Chelsea is a trophy asset. Its location in London ensures it a group of wellheeled and wellconnected fans. Roman Abramovich will gain social cachet and connections from the purchase. Whether it stacks up as a business proposition is secondary.

Harrah’s gambles on Vegas-on-Thames

25 Jun 2003

The US casino operator has put its cards in a £1bn joint venture with the UK s Gala Group to develop large regional casinos. The pressure is on for the government to relax gaming laws and Gala's listed rivals to find experienced partners of their own.

ManU transfers Beckham for E35m to Real Madrid

18 Jun 2003

Why has the world's most famous footballer fetched such a relatively paltry price? Because Beckham's brand value accrues largely to the player, not his employer.

Another buyout firm opts for second bite

23 May 2003

Bridgepoint Capital is buying back a UK health club it listed in 1997 at an 80% discount to the IPO price. Luckily it can count on selling Holmes Place to another LBO fund, because investors won't look kindly on a return to market.

Spain’s new takeover code to get an outing

23 May 2003

Spanish M&A is hotting up again. This time it s in the hotel sector. But that s the only real difference. The bid for 26% of NH Hoteles looks as fishy as recent bids in Spain s utility and construction sectors.

Mitchells & Butlers may turn from prey to predator

22 May 2003

The UK pubs group has probably seen off predators by gearing itself up. Its latest promise is to disgorge another £400mplus. It is clearly tempted by the prospect of buy Scottish & Newcastle's pub estate. But it's only worth doing if the price is good.

Guy Hands may pump £100m into Meridien

20 May 2003

But make no mistake, the private equity guru isn t motivated to rescue the sinking hotel group out of kindheartedness. All investors will take a share of the pain in recapitalising Meridien. And Hands could have a shot at scooping up control.

European tour operators see rays of hope

5 May 2003

MyTravel and First Choice Holidays have seen summer bookings start to pick up following the end of war in Iraq. The operators were smart top cut capacity before the hostilities broke out. But it s not all sunny skies ahead yet.

Share buying sparks bid talk at Man Utd

1 May 2003

A group of wealthy entrepreneurs are suspected of plotting a takeover of the famous football club. There may be a bid one day but it probably won't come from them.

Adidas losing traction

30 Apr 2003

The sneaker giant posted shining Q1 results, but hinted at a disappointing backlog, particularly in the US. Is this the Puma effect or the impact of a revamped supply chain, as the company suggests?

Hands’ investors may lose £800m on Meridien

27 Apr 2003

The hotel group bought by the private equity guru faces disaster. Shareholders will be wiped out and creditors will take a haircut. Guy Hands will find it harder to raise money for his own fund. And the private equity industry as a whole will shudder.

InterContinental warns of profit shortfall

24 Apr 2003

War in Iraq has hit its European business hard. Now its Asian business is being badly hurt by Sars. The newly demerged hotels group is stepping up costcutting. But that won't be enough to compensate. And bid speculation is evaporating.

Six Continents’ gamble pays off

15 Apr 2003

Both the pubs and hotels groups have nabbed enviable market valuations. SixCon was right not to give in to its stingy bidders. Raiders hoping for an easy steal will be disappointed. But both groups will need more bid speculation to keep their valuations aloft.

Internet firm in underwritten placement

26 Mar 2003

It almost sounds like the panto at an investment bank's Christmas party: travel dotcom raises money during war. But it's very real. Moreover, Lastminute.com's deal is entirely underwritten by a bluechip investment bank!

SixCon demerger not a vote of confidence

12 Mar 2003

Shareholders were right to back the demerger, seeing off an opportunistic challenge from Hugh Osmond. But this does not mean all is well at the hotels and pubs group. Less greedy offers for either of the demerged bits would probably succeed.

SixCon shareholders should vote for demerger

7 Mar 2003

Osmond's mainlypaper offer is not compelling. He is also trying to take too big a slice of the action for himself. Better to back the demerger and entertain bids for the component bits afterwards.

Bidders may battle for Pizza Express

27 Feb 2003

Rivals are threatening to upstage Luke Johnson's accepted offer. A bidding frenzy for the chain may soon erupt. Johnson won't want to fall out of the game. That may be good news for shareholders.