BIL raises hostile offer for Thistle to £627m

BIL, the Singaporean investment group, last night raised its hostile takeover offer for Thistle Hotels by 15p to 130p, valuing the London-based hotelier at £627m.

Thistle, which is fighting the bid from its biggest shareholder, is expected to issue its response to the fresh approach today. It urged investors to take no action while it weighed up the move.

BIL, which owns 45.8 per cent of Thistle, said the offer represented cash certainty in uncertain markets. It increased its bid just days after Thistle said that more than 39 per cent of its investors supported its rejection of BIL's bid.

Mark Reed, at Teather and Greenwood, said: "It's borderline whether it will succeed or not." He added that hotel stocks had begun rallying in anticipation of a recovery in business, which made BIL's offer appear even less generous.

BIL, which floated Thistle at 170p a share in 1996, has threatened to delist the company if it amasses a stake of more than 50.1 per cent. If that happens, the Singaporean group, formerly known as Brierley Investments Limited, plans to requisition an extraordinary meeting to remove Thistle's management, led by Ian Burke, the chief executive.

Thistle's bid defence rests on a possible white knight bid and its plans to return about £240m, or 50p a share, to investors.