Shares slide as Vaux denies takeover talks
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.VAUX'S SHARES slumped 11 per cent yesterday, wiping pounds 60m from the pubs-to-hotels group's market value after the company denied that it was in takeover talks.
In a terse six-line statement, Vaux, owner of the Swallow Hotels chains, two breweries and about 700 pubs, put an end to two weeks of intense bid speculation, which had led to a sharp rise in its share price.
Vaux "is not in any discussions which may lead to an offer for the company, or which relate to any of the group's assets," the statement said.
The announcement triggered a wave of selling that left the shares 41p lower at 318.5p - the worst performer in the FTSE 250 index.
The shares are now 45p below their intra-day high touched on Wednesday at the height of the takeover speculation.
The rumour mill had indicated that Whitbread as a possible suitor, suggesting that the brewing giant could be interested in bolstering its Marriott Hotel and Travel Inns hotel chain through the acquisition of Swallow.
According to the rumours, Whitbread would be likely to offload Vaux's pubs estate with Enterprise Inns, which was mentioned as a bidder.
The two companies have been periodically linked with Vaux since June when the Sunderland-based group announced the breakdown of talks discussions with a bidder - widely believed to be the hotel group Stakis.
City analysts yesterday said that the takeover speculation was likely to resurface in the near future as most investors believe the 34 Swallow Hotels would be better off as part of another hotel business.
"In Vaux you have a four-star nation-wide hotel chain whose rating has been pulled down by a poor-to-average pub estate," one observer said.
However, other experts said that the new chief executive, Martin Grant, who was recently recruited from Allied Domecq, could choose to spin off the Swallow business and float it on the market as a stand alone business.
Mr Grant yesterday was unavailable for comment.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments