Six Continents faces £110m split bill

Six Continents has admitted it faces a £110m bill for the cost of demerging its pubs and hotels businesses.

Its vast array of bankers, brokers, lawyers and accountants are charging £51m.

Taxes and "other costs" come to £30m while new banking facilities cost £28m.

The company is demerging its 2,000-strong Mitchells & Butlers pub arm, which includes All Bar One, Ember Inns and Harvester, from its hotels business.

The hotels company will be called InterContinental hotels.

6C has already paid three big banks advising against Hugh Osmond's failed £5.6bn takeover bid up to £15m.

Schroder Salmon Smith Barney and Merrill Lynch racked up £10m as joint financial advisors to 6C.

Broker Cazenove will take between £4m and £5m for its work in persuading investors to let the company demerge into two publicly floated companies.

WestLB now has a chance to enter the banking fee bonanza - it has been appointed to advise on the M&B float and consider any takeover approaches.

More takeover approaches are expected. The group has already repelled a £2.8bn pub approach from private equity firm BC Partners.

BC planned to back former Inn Partnership and Swallow boss Martin Grant.

Laurel Pub Company is "monitoring the situation closely" and may still yet bid for M&B before the split is rubber-stamped on April 14.

Many in the pub industry are expecting an outright auction for M&B once the two businesses have seperated.