6C shareholders call for Richard North's head

Related tags Cvc capital partners Corporate governance Punch taverns Hugh osmond

Richard North is said to be on his way out of Six Continents.The finance director and hotels boss-in-waiting is set to be forced out by the group's...

Richard North is said to be on his way out of Six Continents.

The finance director and hotels boss-in-waiting is set to be forced out by the group's largest shareholders, The Sunday Express reported yesterday.

His head is apparently the price for shareholders agreeing to back the planned demerger. They voted in favour of the pub and hotels split at a meeting last week, defeating Hugh Osmond's £5.6bn takeover bid.

Mr North had been lined up as chief executive of InterContinental Hotels, the new name for the demerged hotels business. But shareholders have been "gunning for him".

One told the Express: "North failed miserably and the sooner the company gets a new CEO the better. He proved how poor he is at the egm, where he gave a totally uninspiring, appalling performance."

Mr Osmond, Punch Taverns founder and a stakeholder in Spirit Group, wanted shareholders to postpone the demerger and consider his bid. He has, says the Express, now ruled out a renewed attempt to buy Six Continents unless other bidders come forward.

Private equity groups CVC Capital Partners and Texas Pacific were said to be in talks to link up with operators Marriott and Starwood in a separate bid.

But Tim Clarke told CVC that because shareholders had voted in favour of the demerger he would not consider its bid.

Related articles:

Six Continents defeats Osmond (13 March 2003) Six Continents appoints takeover committee (12 March 2003)

CVC and Texas Pacific line up rival £6bn 6C bid (10 March 2003)

Hugh Osmond unveils hostile 6C bid (3 March 2003)

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