CVC, TexPac to back Six Continents offer

Hotel chain Marriott International has held talks with the two private equity groups over a possible rival offer for the UK pubs and hotel group.

Marriott International, the US-headquartered hotels group, is preparing to make a private equity-backed offer for UK hotel and pubs group Six Continents.

The group has contacted CVC Capital Partners and US buyout firm Texas Pacific over a joint offer for the business, according to the Financial Times.

 

A bid would see the consortium go head to head the Capital Management & Investment offer put forward by Hugh Osmond earlier this week, valuing the business at £5.6bn.

 

Texas Pacific, which last month confirmed that it was planning to launch the follow-up to its $4.5bn fund raised in 2000, has not been available for comment. CVC declined to comment.

 

CVC has been a keen acquirer of UK retail and leisure businesses over the past twelve months following the close of its E4.65bn European fund in June. CVC is reported to be interested in Six Continents’ pub chain, which includes All Bar One and O’Neill’s.

 

KKR is also believed to be interested in acquiring part of the Six Continents empire, either the hotels or the bars and restaurants unit, following its withdrawal from the bidding for UK supermarket chain Safeway.

 

Six Continents last month announced plans to split its business into two separately listed operations. The company is currently the world’s biggest hotel group, operating the Inter-Continental, Crowne Plaza and Holiday Inn hotels in addition to its chain of 2,000 pubs and restaurants. This morning Capital Management & Investment urged Six Continents shareholders to vote against the demerger proposals which are to be put to the vote on March 12.