Whitbread rules out PizzaExpress bid

Whitbread, the leisure giant whose brands span David Lloyd Leisure fitness clubs and Marriott hotels, yesterday categorically ruled out launching a takeover bid for PizzaExpress, the restaurant chain being stalked by its former owner, Hugh Osmond.

David Thomas, Whitbread's chief executive who was defeated by Mr Osmond in a £2.75bn bid battle for Allied Domecq's pub estate two years ago, said the group did not need to seek acquisitions to achieve its target of increasing underlying sales by 5 per cent.

"I'm not going to buy someone's assets at a premium. We will never make a bid for PizzaExpress," Mr Thomas said.

Analysts had speculated that Whitbread, which owns the UK franchise to Pizza Hut, might be spurred to take on Mr Osmond, who made a £244m indicative offer for troubled PizzaExpresson Monday. But Mr Thomas said a bid made no sense because the business was too fundamentally different from Pizza Hut. "Any acquisition opportunity would have to be exceptional for me to once again lift my head above the parapet," he added.

Luke Johnson, who with Mr Osmond acquired PizzaExpress in 1993, and who is thought by analysts to be another possible bidder, yesterday declined to comment.

Separately, Sun Capital, the private equity group set up by Mr Osmond, yesterday agreed a £465m sale and leaseback deal on the UK properties owned by Center Parcs, the leisure group.