Forte's adopted strategy follows the fashion
Tuesday 05 December 1995
But let's be charitable and assume this is not the panic reaction it appears. Is this the right way forward - and is it enough to see off the Manchester invaders? Little Chef, Happy Eater and Welcome Break would together make an excellent standalone company, but they would probably be worth more in a series of trade sales. Granada itself might be in the queue if it were not bidding for the whole shebang. Indeed, as Granada is quick to point out, the whole concept of this demerger is flawed.
Breaking up is the fashionable thing these days. There are plenty of investment bankers making a good living out of unbundling the deals they set up in the 1980s and before. Fine, when it involves tractors and biscuits, but hotels and catering? Surely these are one and the same business? The demerger strategy might have been a little more believable had it been the up-market hotels that were being groomed for a separate quote.
To demerge the Little Chefs from the Travelodges, many of which are on the same sites, seems commercially a much more contentious approach. Furthermore, it goes against the play Forte itself made of the expansion of Travelodge three years ago.
No, though this might be a step in the right direction, what we know of these plans so far is not going to do the trick. The bid is far from over yet and it would be wrong to think of this as Sir Rocco's last throw of the dice. Forte's defence document - expected to concentrate on trying to reverse the perception that Sir Rocco has been a failure as a chief executive - has yet to be published and it can be reasonably assumed it will add more twists to the tale. A full revaluation of property assets and a profits forecast is even further down the line. Nonetheless, Forte still has an uphill struggle judging by soundings taken among its big shareholders.
- 1 Sabina Altynbekova, the girl branded 'too good looking' for volleyball, says social media obsession with her is a 'bit much'
- 2 Disney heiress Abigail disowns her share of family profits in West Bank company
- 3 Israel's propaganda machine is finally starting to misfire
- 4 Zayn Malik on Israel-Gaza: One Direction singer bombarded with Twitter death threats after posting #FreePalestine
- 5 'Hello mum, this is going to be hard for you to read ...'
Sally Farmiloe dead: Howards' Way actress, and former mistress of Jeffrey Archer, dies aged 60
Women in Turkey have a laugh in public at the deputy Prime Minister's expense
Sabina Altynbekova, the girl branded 'too good looking' for volleyball, says social media obsession with her is a 'bit much'
Disney heiress Abigail disowns her share of family profits in West Bank company
Australian model Robyn Lawley stages naked protest against huge coal mine seven times the size of Sydney Harbour
The secret report that helps Israel hide facts
Land for gas: Merkel and Putin discussed secret deal could end Ukraine crisis
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
A day in the life of Vladimir Putin: The dictator in his labyrinth
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
- < Previous
- Next >
iJobs Money & Business
£20000 - £24000 per annum: Harrington Starr: A leading provider of web based m...
£28000 - £32000 per annum: Ashdown Group: Secretary (Sales Team Support) - Mat...
Competitive (DOE): Guru Careers: We are looking for an Assistant Management Ac...
£600 - £700 per day + competitive: Orgtel: Senior Investment Accounting Change...