Six Continents Awaits Shareholders’ Votes

NEW YORK — If Six Continents PLC’s shareholders go ahead with their extraordinary general meeting as planned on March 12, then by this time tomorrow all the “what ifs” of the past few months will be over— including ostensibly any shouting— for the U.K.-based lodging and pubs chain. Whether it will still be able to forge ahead with its plans to demerge its key businesses will depend on the vote; 75% of shareholders must approve the strategy that will deliver two new entities: the InterContinental Hotels Group, which will include its Holiday Inn, InterContinental and Crowne Plaza brands, along with its soft drinks business, and Mitchells & Butlers, its pubs business. A strong vote in favor of the demerger is expected to derail last week’s £5.64 billion (US$8.91 billion) hostile bid for 6C by British entrepreneur Hugh Osmond via Capital Management & Investment (CMI) that was roundly rejected by 6C. According to the Financial Times, Osmond “has made clear that he will withdraw if the EGM is not adjourned,” a move Osmond has aggressively been pushing. Meanwhile, private equity group CVC Capital Partners Ltd. issued a formal statement confirming that it is in talks with potential partners over a possible offer for 6C, according to reports in the London Times. CVC stated: “We have been party to discussions with a number of private equity and hotel groups on the formation of a consortium to bid for Six Continents, which could take the form of an offer. At this point no consortium has been formed and no proposal has been made to Six Continents.” CVC’s statement may prompt shareholders to ask for an adjournment of Wednesday’s meeting to allow CVC to formulate a proposal while giving Osmond time to enhance his existing offer, said the report. As previously reported in HOTEL BUSINESS®, both Starwood Hotels & Resorts Worldwide, Inc. and Marriott International, Inc. are reportedly in negotiations with CVC to make a friendly takeover bid for 6C, according to Dow Jones Business. Reports in last Friday’s Financial Times placed Marriott in discussions for a potential bid for 6C with Texas Pacific Group, a U.S. buyout concern, and CVC. Both Starwood and Marriott declined to comment. — Stefani C. O’Connor