6C May Return Cash To Shareholders

LONDON— Six Continents longstanding dilemma of whether to return surplus cash to shareholders or make an acquisition is expected to be resolved in the near future, according to a recent report by HVS International. Certain analysts consider that the £1 billion (US$1.45 billion) in question, a third of the money Six Continents amassed from the sale of its pubs and brewing interests, will go to shareholders through a structured buyback program. However, analysts are divided between those who see this option as being good for the companys shares in the short term and those who fear a lack of long-term thought by Six Continents, said HVS. Although Six Continents has in recent months disengaged itself from talks with both Wyndham International and Starwood Hotels & Resorts, those in favor of an acquisition can take heart from recent reports, HVS said. Some commentators consider that Westmont Hospitality Group may be of renewed interest following its recent purchase of a 7.97% stake in Queens Moat Houses (QMH). Both Westmont and QMH are existing Holiday Inn franchisees. Six Continents board is expected to make a final decision in May. SOURCE: HVS International