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GlobeSt.com UPDATE: 6C Rejects Osmond Bid

LONDON-The board of Six Continents has rebuffed an unsolicited bid from British restaurant entrepreneur Hugh Osmond. The five-billion pound ($7.9 billion) offer marks the first firm bid to come in for takeover-target 6C.

By Charlie Jacoby & Diana M. Rodriguez | Updated on March 05, 2003

LONDON-Standing behind its de-merger plans, the board of Six Continents has firmly rejected an unsolicited takeover bid from Hugh Osmond’s Capital Management and Investment Plc. Osmond offered more than £5 billion ($7.9 billion) for the global hotelier and restaurant company, but 6C executives deemed the deal “too risky.”

Citing a lack of hotel experience and possible corporate governance issues in Osmond’s firm, 6C chief executive Tim Clarke, explains in a statement that, “CMI’s offer would enrich its directors at the expense of our shareholders’ long term interests. The vague proposals set out carry considerable risk, which would be borne by our shareholders.”

The bid outlined by the British restaurant and pub entrepreneur included shares in his shell firm, CMI, along with a facility to offer about a quarter of the purchase price in cash if requested.

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