Hugh Osmond will contact Six Continents (6C) today to discuss a possible £5.6bn-£7bn bid for the company.
6C is expected to rebuff his overtures, a move which could persuade Osmond to launch a hostile bid through his Capital Management and Investment vehicle.
Kohlberg Kravis Roberts (KKR) and Blackstone are ready to mount a joint white knight bid, put at £8bn. Hilton is also said to be preparing plans for a bid although it said nothing was imminent. Osmond is expected to break up and auction 6C’s hotel division.
Starwood and Strategic Hotel Capital have expressed interest in buying parts of the hotel estate.
Osmond is said to be concerned about unconfirmed reports that Goldman Sachs is working with KKR because he has provided the bank with details of his 6C business plan.
References: Financial Times 24/02/02 page 18 (Lex), page 19, page 21 (Weekend Press Briefing), The Times 24/02/02 page 21, page 22 (Need to know), The Daily Telegraph 24/02/02 page 29, page 31 (The City Checklist
