AHG Venice, created by Richard Balfour-Lynn and other directorsof the listed group MWB, is offering 825p a share for De Vere,valuing the equity at euro 1 billion ($1.32 billion). With debt andpension liabilities, the total value of the deal tops euro 1.59billion ($2 billion).

Shareholders representing 20% of De Vere's equity, includingformer chairman Lord Daresbury and property group Trefick, haveaccepted the AHG bid, but the directors' backing depends onclearance by the company's pensions trustees and the pensionsregulator. De Vere chairman David Richardson says that, "The boardhas received one offer [from AHG] capable of acceptance. It is agood price, one shareholders will want to look at. We have notreceived any other genuine offers." Permira is expected to decidethis week whether to make a counter bid.

AHG officials believe a combination of De Vere's 18 four- andfive-star hotels and its Village Holiday brand will fit with theprivate company's Verve business, formerly Initial StyleConferences, which it bought from Rentokil in November.