Brierley group considers offer for Thistle Hotels

Thistle hotels yesterday joined the list of British hoteliers being stalked by would-be predators after BIL International, its majority shareholder, admitted it was considering making an offer.

BIL, a Singapore-based investment group, said its board was considering launching a bid "at a modest premium" to Thistle's share price as of Thursday's close of 100p. It is thought that BIL, whose president is the New Zealand entrepreneur Sir Ron Brierley, was forced by the Takeover Panel to issue a statement in response to a sharp rise in Thistle's share price. Thistle's stock climbed 7.5 per cent to 107.5p, valuing the group at just under £520m.

In response, Thistle said it had "not received any formal approach from BIL regarding a possible offer". Ian Burke, its chief executive, has come under fire for dithering about what to do with £600m he raised in April by selling 37 of its hotels but while retaining the management rights.

BIL, which floated Thistle in 1996 at 170p a share, said there could be "no assurance that any offer will be forthcoming". It has a 46 per cent stake in Thistle.

This is the second time in four months that Thistle has been the subject of takeover speculation. Last month, Orb Estates, a Jersey-based investment group that bought the 37 Thistle sites in March, decided against a bid for the London hotelier.

Peter Joseph, an analyst at KBC Peel Hunt, said: "The group has got itself in a pickle over its balance sheet but I can't understand why it's worth less than 150p to 175p per share."