View from City Road: Savoy's survival in the balance

One of the City's longest-running feuds - Forte's attempt to gain management control of the Savoy - moves inexorably towards its denouement.

It's hard to imagine that Britain's most prestigious hotels group can survive the latest setback despite its seemingly impenetrable shareholding structure. The Savoy will have to dig deep into reserves to pay even the halved dividend announced yesterday. Profits show little sign of a recovery this year either.

The Savoy's already doubtful case for independence has been tarnished by these financial results. The only barrier between Forte and outright victory is a charitable trust controlled by the Hon John Sinclair, as custodian of trusts left by Sir Hugh Wontner, the former chairman. Loyal as this shareholder is required to be, even it must now seriously question its continued role as a shareholder.