Gresham Hotel shares drop after bid refusal

SHARES in the Gresham Hotel group dropped by nearly 7% last night after it rejected a takeover offer.

The largest shareholder in Gresham, the Israeli hotel group Red Sea, rejected the indicative bid of €1.35 a share as undervaluing the company. As it owns close to 27% of Gresham’s share it was able to block a takeover as the mystery bidder for the company said it wanted acceptances for the offer from 80% of shareholders.

Last month, the unnamed consortium, believed to be a group of property developers, lowered its indicative takeover price from €1.45 to €1.35 per share.