Under the plan, Six Continents' hotels brands will be injected into InterContinentalHotels Group while the breweries operations will go under the name of Mitchells & Butlers. The company claims the move will create at least £100 million ($160 million) in annual cost savings, as well as freeing up capital to be returned to shareholders.
Tim Clarke, Chief Executive of Six Continents said: "We urge shareholders to vote in favour of the demerger which the board unanimously believes will deliver maximum value and choice."And he attacked Osmond for the disruptive timing of his approach. "CMI has had since 1st October 2002, when we announced the plans for our demerger, to prepare an offer for Six Continents that would be attractive to our shareholders. In full knowledge of our timetable, and for reasons known only to itself, CMI has chosen to make an offer in the closing stages and to impose a false deadline on our shareholders," he said.
If shareholders vote to approve the demerger, trading in M & B and IHG shares will commence on Tuesday 15 April.
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