What the Sunday papers say - August 26
The Observer
Six Continents, formerly Bass, is expected to conclude a £3bn deal to acquire Wyndham International, a rival company in North America. Advisers from both companies are thought to have met in recent weeks and although a spokesman for Six Continents said the rumours of a deal were "market speculation" he admitted the company was always looking at overseas opportunities. Six Continents owns brands such as All Bar One, O'Neill's, Goose and Ember Inns as well as international hotels.
Interbrew has been told it could be allowed to keep Bass Brewers if it disposes of Carling. The company's acquisition of Bass Brewers has been investigated by the Office of Fair Trading.
Rural licensees and owners of other small businesses have reacted angrily to news that farmers could be compensated twice for the foot-and-mouth disease outbreak. Farmers who were insured against the disease are being compensated by the Government even though they are also receiving hundreds of thousands of pounds from their insurers. Many rural businesses such as pubs, restaurants and hotels, have been destroyed by the effect the disease has had on tourism but as yet publicans have received no compensation from the Government other than rate relief.
Scotland on SundayNo industry related news
The Mail on SundayNo industry related news
The Sunday Telegraph No industry related news
Independent on SundayNo industry related news
The Financial Times
Punch has said that Tony Campbell, a former deputy chief executive of Asda, has agreed to become non-executive chairman of its Punch Retail managed pubs arm. The appointment is part of a plan to float Punch Retail, which has more than 1,000 pubs, bars and clubs. Mr Campbell, an executive with Wal-Mart International until March, will work with Karen Jones, Punch Retail's chief executive. Punch Group's larger leased pub business - the Punch Pub Company - is also being groomed for flotation and its board is undergoing a similiar strengthening. Last month, Punch chairman Hugh Osmond said that he was winding down his executive role as part of this move to devolve more power to the two units. Mr Osmond said he did not want to be the driving force behind the flotations. Instead, he said he would search for acquisition opportunities outside the pub industry, targeting underperforming companies "where the culture feels all wrong".
Allied Domecq has won control of Montana, New Zealand's biggest winemaker, after Lion Nathan unexpectedly walked away from the protracted takeover battle. Allied's shares rose marginally as it insisted it would be able to justify the £300m overall price, despite a recent weakening in Montana's performance. Lion, Australia's second largest brewer, said it had decided to sell its 43 per cent stake to Allied, which already owned 27 per cent. It claimed the bidding had gone too high. Together with the 19 per cent stake regulators ordered it to sell earlier this month, the surprise sale will bring Lion a pre-tax profit of NZ$127m. Analysts said Lion, which had initially hoped to seize control of Montana by buying just 50.1 per cent, would have required a rights issue to fund a bid for the whole company. It would have also needed to beat Allied's offer of NZ$4.80 a share. Gordon Cairms, Lion chief executive, said: "We do not believe that we can create value for our shareholders by bidding over NZ$4.80 for the balance of the company."
