Wednesday 15 September 1999
It is a characteristic of such transactions that both parties will magnanimously claim the deal is good for both of them. Rarely is this the case, still less does anyone believe it to be so. Maybe, just maybe, this is one such rare occasion.
Quite a few in the City think S&N is overpaying. One of its competitors, who for obvious reasons wishes to remain anonymous, describes the price as "simply bonkers". At nearly pounds 1.4m per outlet, it might seem hard to disagree.
However, for Scottish & Newcastle the transaction is essentially an asset swop, and provided it can obtain an equally full price for the 600 pubs it must now sell under the beer orders - the purpose of which most of us struggle to recall - it will both give the group a better geographic spread as well as fulfilling its strategy of moving towards a predominantly managed pub estate. The deal should quite quickly prove earnings enhancing.
As for Greenalls, it completes the company's painful passage from family- controlled regional brewer, to independently managed provincial hotels group. Whether it will long be allowed to remain so is anyone's guess.
Many believe that by selling the pubs, Lord Daresbury has merely dressed up his company for takeover. Still smarting from its failure to acquire Allied Domecq's pubs, Whitbread appears to be performing another 180 degree turn back to its original strategy of expanding in hotels. Greenalls' De Vere Hotels chain looks just the ticket.
- 1 Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
- 2 People all over the world are getting semicolon tattoos to draw attention to mental health
- 3 Van driver who comforted Clark Carlisle and called 999 after suicide attempt dies age 24
- 4 James Blunt was special guest on the highest-rating Top Gear episode ever
- 5 The biggest first date turnoff has been revealed
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
Sickness and disability benefits could be reduced by £30 a week as part of £12bn welfare cuts
iJobs Money & Business
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...
£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...