Gresham in line for €100m-plus takeover bid

THE Gresham Hotel is in play for a possible €100m-plus takeover bid, the Irish Takeover Panel ruled yesterday when they deemed the company to be “in an offer period” for the purposes of disclosures by any of the parties involved.

If the group of Irish business people, whose initial approaches to take the company over have been rebuffed, have built up a stake of 1% or more in the company the Takeover Panel expects the suitors to make this known as a matter of urgency.

The shares closed up 7.5% yesterday after being up 10% in early trading.

Yesterday, the board of the Gresham Hotel Group plc issued a statement to say it is not in discussion with any party in connection with a proposed offer for the company.

“The board confirms that it received an approach on behalf of a consortium of investors, which was conditional on the support of the Red Sea Hotel Group at a price below that which was reported in an article in the Sunday Times on 19th October, 2003.

“Given the condition attaching to the approach, the board directed the consortium to the Red Sea Hotel Group.

“The board notes the announcement made by the Board of Red Sea Hotel Group this morning which states that they are not in discussion with any party with respect to their shareholding in Gresham Hotel Group plc,” the hotel company said.

The Red Sea Group hold a 24.1% stake in Gresham.

It is being speculated that the takeover group includes a number of people already in the hotel industry who may be interested in dividing up the hotel assets of the company post purchase.

In this context, it is believed that the Gresham Hotel’s flagship premises on Dublin’s O’Connell Street is worth close to €50 million.