Fresh bid for Jurys puts value past E1bn

Brian O’Mahony, Chief Business Correspondent

Analysts said it would take a bid of over 1bn to gain control of the business, which operates 32 hotels across Ireland, Britain and America.

Confirming the latest developments, the board of Jurys Doyle said it had received a further “unsolicited approach” from Gresham Group owners Precinct Investments Ltd at a price of E16.25 per share, which may or may not lead to an offer for the company.

Shares in Jurys Doyle rose by over 5.2% or 80 cents to E16 in Dublin.

The shares have made substantial gains since news of the bid first surfaced and the share price has remained well above the pre-speculation bid price ever since.

Commenting on the latest approach the Jurys Doyle board said: “The approach remains preliminary in nature, is subject to a number of conditions and there can be no certainty that an offer will ultimately be forthcoming.

“A further announcement will be made in due course.”

The initial offer from the Gresham Group, led by Bryan Cullen, was E15.25 and valued the group at E960 million.

Jurys Doyle rejected the bid out of hand, saying in a statement that it failed to reflect the true value of the assets of the company.

A prime Ballsbridge site, home to the Towers Hotel, Jurys Hotel and the Berkley Court, is seen as the key target in the bid from Precinct, which took over the Gresham Hotel Group last year for E117m.

Mr Cullen is partnered by solicitor David Coleman and Wexford hotelier and builder JJ Murphy.

Mr Cullen is managing director of Jackson Homes and held 66% of the company that bought the Gresham Hotel chain last year.

Mr Coleman, of Dublin-based solicitors Lavelle Coleman, and Mr Murphy, each held 16.5% of the bidding company which was backed by Anglo Irish Bank at the time.

Last night a spokeswoman for Jurys Doyle said the board was reaching the end of its deliberations on the key Ballsbridge site believed to be the prime motivating factor behind the bid from Mr Cullen and his fellow shareholders in Precinct.

The board is expected to outline its intentions for the site shortly.

It may recommend a complete or partial sale of the key site, which is conservatively estimated to be worth E200m.

Some sources suggest the site could be double that value if it was put up for auction by the group.

The spokeswoman said an announcement was pretty close which would put an end to the speculation about the site at least.

But the fight to gain control of the hotel chain is only beginning, analysts said last night.