Shares slide as Vaux denies takeover talks
Friday 14 August 1998
In a terse six-line statement, Vaux, owner of the Swallow Hotels chains, two breweries and about 700 pubs, put an end to two weeks of intense bid speculation, which had led to a sharp rise in its share price.
Vaux "is not in any discussions which may lead to an offer for the company, or which relate to any of the group's assets," the statement said.
The announcement triggered a wave of selling that left the shares 41p lower at 318.5p - the worst performer in the FTSE 250 index.
The shares are now 45p below their intra-day high touched on Wednesday at the height of the takeover speculation.
The rumour mill had indicated that Whitbread as a possible suitor, suggesting that the brewing giant could be interested in bolstering its Marriott Hotel and Travel Inns hotel chain through the acquisition of Swallow.
According to the rumours, Whitbread would be likely to offload Vaux's pubs estate with Enterprise Inns, which was mentioned as a bidder.
The two companies have been periodically linked with Vaux since June when the Sunderland-based group announced the breakdown of talks discussions with a bidder - widely believed to be the hotel group Stakis.
City analysts yesterday said that the takeover speculation was likely to resurface in the near future as most investors believe the 34 Swallow Hotels would be better off as part of another hotel business.
"In Vaux you have a four-star nation-wide hotel chain whose rating has been pulled down by a poor-to-average pub estate," one observer said.
However, other experts said that the new chief executive, Martin Grant, who was recently recruited from Allied Domecq, could choose to spin off the Swallow business and float it on the market as a stand alone business.
Mr Grant yesterday was unavailable for comment.
- 1 Malaysia Airlines MH17 crash: Pro-Russian rebel 'admits to shooting down plane'
- 2 Louis van Gaal gets tough with Manchester United players, with Darren Fletcher and Luke Shaw berated in public and Phil Jones left looking bemused
- 3 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 4 Peaches Geldof inquest: Tragic final moments of socialite's life reveal she lied to husband about failed heroin tests
- 5 Israel has discovered that it's no longer so easy to get away with murder in the age of social media
Lana Del Rey: 'I have slept with a lot of guys in the industry'
Peaches Geldof cause of death: 'Heroin addict' socialite had taken fatal dose of drug, inquest concludes
Malaysia Airlines MH17 crash: Pro-Russian rebel 'admits to shooting down plane'
Peaches Geldof inquest: Tragic final moments of socialite's life reveal she lied to husband about failed heroin tests
Israel-Gaza conflict: The myth of Hamas’s human shields
Malaysia Airlines flight MH17 crash: 'Nine Britons, 23 Americans and 80 children' feared dead after Boeing passenger jet is 'shot down' near Ukraine-Russia border
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
iJobs Money & Business
£350 - £400 per day: Orgtel: PMO Analyst - Banking - London - £350 -£400 per d...
£300 - £350 per day + competitive: Orgtel: Cost Reporting Manager - MI Packs -...
£35000 - £40000 Per Annum plus 23 days holiday and pension scheme: Clearwater ...
£475 - £525 per day: Orgtel: Test Lead, London, Investment Banking, Technical ...