Osmond in talks with 6C

Hugh Osmond and Six Continents are locked in talks over the future of the hotels and pubs giant.

Mr Osmond wants Six Continents to postpone plans to demerge and consider a takeover offer from Capital Management & Investment (CMI), where Mr Osmond is chairman.

If successful, CMI would take most of the pubs and sell the Holiday Inns, InterContinental and Crown Plaza hotel brands to a hotel operator like Hilton or Marriott.

The meeting came after more than a week of verbal volleys, claims and counter claims from the two sides. Mr Osmond had described the present management as appalling, while Six Continents said most of Mr Osmond's plans for raising cash from the pubs were lifted from its own demerger proposals.

As this articles was posted, the former Pizza Express and Punch Taverns entrepreneur was expected to table a bid worth more than £5.6bn, or £7bn including debt. Six Continents said that any proposals would be put to the board. The company recently announced it would split the hotels and pubs into two companies.

If 6C refuses to adjourn a shareholder meeting regarding the demerger, scheduled for March 12, Mr Osmond plans to launch a hostile bid. It is thought that any bid would spark a string of offers from other interested buyers.

Last week Six Continents announced it could raise up to £1.5bn against Mitchells & Butlers, its newly-named 2,000-strong pub business. It also said it would take out $100m (£63m) of costs from the hotels division.