BRITISH television and leisure group, Granada, has raised its hostile bid for hotels and restaurants company, Forte, by 15 per cent to recapture the high ground in the fiercely fought takeover battle.
Analysts said the struggle had now tilted in Granada's favour but the new offer did not represent the "killer punch" Granada was claiming.
Family-run Forte, led by chairman Sir Rocco Forte, promptly rejected the bid, saying Granada's bid and promise to sell off Forte's luxury Exclusive and four-star Meridien hotels was aimed at asset-stripping the firm.
Granada left its core cash and shares offer unchanged but said it would add a special dividend of 47 pence per Forte share net of tax. It also raised the cash alternative to the offer.
Granada said the new offer was final and valued Forte at around £3.8 billion sterling against £3.3 billion under the original bid. Closing date for the offer is January 23rd.
Granada is offering four new Granada shares plus £23.25 cash for every 15 Forte shares. The cash alternative offer is raised to 362 pence per Forte share from around 322 pence.
Granada said the new offer valued Forte at 373.3 pence per share, or 385.1 pence for non-tax paying shareholders such as pension funds.
Forte shares rose on news of the new bid. gaining 16 pence to 360 before easing to close at 351. Granada shares dipped six to 637 after a low of 618 as market operators attempted to work out whether the new offer would be sufficient to win the battle.
Granada chief executive, Mr Gerry Robinson, said he believed the revised bid would secure victory. "We believe this to be the `killer blow' people have been talking about," Mr Robinson said.
Forte blasted the new bid, however. "Now we see this bid for what it's worth - a 1980s style highly-leveraged asset strip which has nothing to do with management skills," he said.
The battle has turned increasingly acrimonious with Forte's lawyers issuing a writ against Granada finance director, Mr Henry Staunton, on Monday over his reported comments to a newspaper.
Granada's plans to improve profitability by £100 million per annum and its decision to dispose of Forte's top hotels were well received by analysts.
