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.
Children's bookseller wins The Independent's new author search
Board creates magnetic field to achieve lift
- 1 Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
- 2 Banksy arrest hoax: Internet duped by fake online report claiming artist's identity has been revealed
- 3 Former East 17 frontman Brian Harvey turns up at Downing Street and 'demands to speak to Prime Minister'
- 4 Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
- 5 Paralysed man Darek Fidyka walks again after treatment by British doctors on brink of 'cure'
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver 'kicks gay couple off for kissing'
Jose Manuel Barroso warns David Cameron against making 'historic mistake' over immigration reforms
Worst Airports of 2014: Poll names Islamabad airport in Pakistan worst in the world
iJobs Money & Business
£23000 per annum + pension and 22 days holiday: Ashdown Group: An established ...
£27000 per annum + pension, 22 days holiday: Ashdown Group: An established ind...
£23000 - £26000 Per Annum: Clearwater People Solutions Ltd: Our client is curr...
£25 - 30k: Guru Careers: A Corporate Actions Administrator / Operations Admini...