Holding these for shareholder discount and the belief that someone will come along with a plan on what to do with them .....

Now could be the right time to get in for a ride northwards with little downside risk


ains


Thread started at 95p mid - currently at a high of 129p - up 35.79%








Investec Securities took the stock off its "sell" list citing among other factors the potential for "corporate action".


Banks call in Ernst & Young to check out Thistle Hotels
By Lauren Mills and Damian Reece (Filed: 02/02/2003)


Thistle Hotels' bankers, led by the Royal Bank of Scotland, have hired Ernst & Young to carry out a review of the business which could lead to sweeping management changes and disposals at the hotels group.

Although Thistle has around 320m in the bank, the banks are thought to be alarmed at the group's precarious trading position. They are also said to be questioning the ability of the management to steer the company through a period of uncertainty in the market.

In January, Thistle revealed a 10.5 per cent drop in average room rates in London last year. It also refused to give details of how it planned to spend the cash raised through the disposal of 31 regional hotels to Orb Estates last March for 600m. As part of the deal, Thistle retained management contracts to run the hotels.

The group also admitted it would be difficult to forecast turnover for 2003 because it remained "cautious as to when there will be a recovery in general hotel trading conditions".

Ernst & Young is expected to report back to the banks on the company's overall financial strength within the next two weeks. E&Y is likely to focus on current trading, as well as prospects for improving performance in a relentlessly difficult market.

The accountancy firm will also advise the banks on a range of strategic options including further disposals.

Thistle's shares rallied 9p to 98p at the end of last week after Investec Securities cited "corporate activity" as a reason for taking the stock off its "sell" list.

Ian Burke, the chief executive, is under mounting pressure to clarify whether he plans to return the cash to shareholders or spend it on acquisitions.

His indecision is causing friction among Thistle's leading institutional shareholders who hold differing views about what should be done with the cash.

The two biggest shareholders, each of which has a seat on the board, are BIL International, which owns 45.8 per cent, and the Government of Singapore which has a 13.1 per cent stake.

Other large investors include Havelock Investments and Tweedy Brown Company.

A spokesman for the company insisted it knew nothing of E&Y's review. He also confirmed that Burke would update the City with a strategic plan for the group when it announces its year-end results in early March.

I agree. Not heard anything more about the special dividend.

guess these things take time ...... share price still above the offer :-))

Low level of acceptance for BIL's bid for Thistle
By Peter John in London FT
Published: April 23 2003 11:43 | Last Updated: April 23 2003 17:27


BIL, the company bidding for Thistle Hotels, on Wednesday stepped up the war of words as it announced that fewer than 1 per cent of the shareholders had accepted its offer.


The Singapore-based investment company, which is already the majority shareholder in the hotels group with 45.8 per cent, said that by the offer's first closing date, it had received acceptances in respect of 1.36m shares, representing some 0.3 per cent.

BIL accused Thistle's management of presiding over a near-60 per cent slump in operating profits over the past four years and said that costs had leapt by more than 70 per cent, even though the number of hotels had halved.

It also argued that increasing competition was further undermining profitability. It said four new hotels threatened trade at the flagship Thistle Tower hotel in central London.

Analysts said the low take-up implied the bid would probably last for the full 60 days of the offer period, with BIL waiting until the last possible moment to increase its terms. It has offered 115p a share, or 555m ($875.6m), while Thistle claims that the company is worth 211p a share. Several institutions have signalled that they might be happy with 140p a share.

Thistle continued to recommend that shareholders reject BIL's offer.

David Newbigging, the chairman, said: "This very low level of acceptances shows that our shareholders find BIL's arguments unconvincing. BIL's offer significantly undervalues Thistle and the board of Thistle urges shareholders to continue to reject this attempt to acquire Thistle at a wholly inadequate price."

One leisure analyst said: "It is predictable that they have got no acceptances. I think the 115p offer will get nowhere and they are just going through the motions of the takeover period at the moment."

The offer was extended until May 2. That locks the bid into a time-frame that allows BIL two further two-week extensions until it is forced to lapse under Takeover Panel rules.

Thistle said last week that 39 per cent of shareholders had written to say they did not intend to accept BIL's offer. Its statement implied that the government of Singapore - the group's second-biggest holder with 20 per cent - was resisting the offer. Thistle has also offered a potential 50p-a-share carrot out of its net cash pile of 367m to persuade shareholders to remain loyal.

However, analysts have said Thistle has not received "irrevocable" undertakings and shareholders were, therefore, able to keep their options open. Thistle shares were marginally higher on Wednesday at 119p.

LONDON (AFX) - InterContinental Hotels Group PLC said revenue in the three months to March 31 was hit by the negative effect on travel caused by the war in Iraq, the weak global economy and the SARS outbreak.
In its first trading update since the demerger from Six Continents, Intercontinental said it experienced pressure on hotel margins during the period, largely due to the fact that growth in revenue was occupancy-led.

As a result of all these influences profits in the period, as in the previous 3 months, were substantially lower than last year, the company said.

odd ..... ticked up on what looks like a big sell ...... 5/12 mm's have turned blue ..... now 119/122p



ains

Big sell (compared to other deals) went through late in afternoon - didn't seem to affect the price!

The latest update on offer has just arrived ..... and binned

Trading is quiet today with less than 5k traded



ains

ains, me too, more for the recycle skip!

Having invested a big chunk of time and money - I cannot see them just walking away from it ..... the 'wont sell for 12 months' stance is two edged and doubt they will want the world to see them as losers ..... nor will they want to be locked in. If the shares fall I will add andput them away for better times or another bid.

My guess is a better offer at say 145p in near future.


ains

I must admit, I've been considering buying more for quite a while, to reduce my ave cost price of my holding. But keep putting it off, and currently only investing for the short term.

I can understand the ST approach and not thinking of adding to my THO holding right now but if they do fall after the bid expires I will jump in

Fresh blow for Orb as Thistle sale turns sour

Secretive Jersey-based company may recoup less than it paid for hotel group

Jamie Doward, deputy business editor
Sunday April 27, 2003
The Observer

Attempts by Orb Estates, the secretive company at the centre of a Serious Fraud Office investigation, to sell 37 Thistle hotels to Newcastle tycoon Allan

Rankin for750 million, have come unstuck.
The Jersey-based firm has been trying to dispose of the hotels to Rankin for weeks in an attempt to pay off creditors. Rankin, a close business associate of Jon Pither, a 'serial' director and former adviser to Orb, said the deal was 'a dream come true'.

But sources familiar with the situation say Rankin is no longer in the running, leaving the way open for two other parties. An announcement on the eventual winner is expected within the next two weeks. The company leading the pack is said to be a financial bidder that has so far not been linked with the deal.

News that Rankin has failed to acquire the Thistle hotels portfolio could be a serious blow for Orb. The company needs to pay off outraged investors in bombed-out dotcom firm Izodia, in which Orb owns a 29 per cent stake. Shortly after acquiring the stake, 33m of the firm's cash was transferred into an account belonging to an Orb subsidiary, a move that prompted the SFO to investigate. The company also owes a number of banks more than 30m and the Thistle hotel group around 15m.

Although Rankin pledged to buy the hotel portfolio for 750m it is not clear how he would raise the cash. Sources say advisers for Rankin had started sounding out interested parties to buy chunks of the hotel group within weeks of him buying the assets.

His removal from the bidding war leaves open the prospect that the eventual buyer may end up acquiring the hotel assets for significantly less than the 600m Orb paid for them last year.

The hotel sale is being masterminded by Morgan Stanley. The bank is attempting to ensure that all parties are satisfied with the outcome and has presided over a complex series of discussions to produce a settlement.

One party keenly involved in the negotiations is Laxey Partners, which holds a sizeable stake in Izodia, has a rep resentative on its board, and has been vigorously pressing Orb to return the missing millions. However, in a move that once again highlights the Byzantine complexity of Orb's network of business dealings, it appears that the Jersey company has been involved in transactions with Laxey in the past.

In April 2002, Laxey sold a 17 per cent stake in Izodia to MU Nominees, a company that had bought a sizeable interest in another Orb investment, Atlantic Caspian Resources in 2000. MU Nominees bought the Atlantic Caspian stake on behalf of Jersey Asian Venture Fund ILP - a joint venture with Orb's parent company Lynch Talbot. The revelation will once again draw attention to the strange links between Orb and Izodia.

Last year, Pither stood down as Izodia chairman Pither following advice from the Takeover Panel. Investors had expressed concerns that, as a former director and close business associate of Abingdon Capital, Orb's main financial adviser, Pither was open to a conflict of interest claim.

I note the new '2002 most improved uper full service hotel brand' ads running in todays press



ains

The Board of Thistle* is today posting a circular to shareholders in response to
BIL International Limited's ('BIL') document dated 23 April 2003. The Board of
Thistle* continues to believe that BIL's offer significantly undervalues Thistle
and reiterates its recommendation that shareholders should reject BIL's offer
and urges shareholders not to complete any form of acceptance.

Received my circular this morning ..... share price flat and still above the offer


The Board of Thistle* notes yesterday's announcement by BIL International
Limited ('BIL') confirming that Thistle shareholders who have already accepted
or who accept BIL's offer may withdraw their acceptances.


Thistle shareholders who have already validly accepted BIL's offer, and who now
wish to withdraw their acceptance, should call the Thistle Shareholder Helpline
on 0845 200 1863 (or +44 20 7864 9177 if calling from outside the UK) to request
a form of withdrawal.


The Board of Thistle urges Thistle shareholders to continue to reject BIL's
offer and, if they have already accepted, to withdraw their acceptance.

reverse take over maybe :-))



BIL INTERNATIONAL LIMITED



SUBSTANTIAL INCREASE IN TRADING VOLUME



We, BIL International Limited ("BIL"), refer to the Exchange's query on 30 April
2003 concerning a substantial increase in the trading volume of BIL shares
today.



We wish to state that we are in the course of a takeover offer ("Offer") for
Thistle Hotels plc. Save for the Offer, we are not aware of other possible
explanations for the substantial increase. An appropriate announcement will be
made as and when any development arises which requires disclosure. We confirm
that we are in compliance with the SGX listing rules and, in particular, listing
rule 703.

ticking up on low vol ..... could be interesting if BIL come under offer



ains

Increased offer coming

bit tight timing wise


INCREASED* OFFER OF 130 PENCE PER SHARE IN CASH

Introduction

The board of BIL announces the terms of an increased* cash offer made by HSBC on
behalf of BIL (UK), a wholly owned subsidiary of BIL, to acquire the whole of
the issued and to be issued share capital of Thistle not already owned by the
BIL Group (the 'Increased Offer').

The Increased Offer

The Increased Offer is made by HSBC on behalf of BIL (UK) on the following
basis:
for each Thistle Share 130 pence in cash**

The Increased Offer values the whole of the existing issued ordinary share
capital of Thistle at approximately 627.1 million.

The Increased Offer Price represents approximately:

a premium of 46.1 per cent. to Thistle's Closing Middle Market Price of 89
pence per share on 29 January 2003, the last business day prior to Investec
re-rating Thistle based on 'potential for corporate action';

a premium of 30.0 per cent. to Thistle's Closing Middle Market Price of
100 pence per share on 20 February 2003, the last business day prior to the
announcement by BIL that it was contemplating making an offer for Thistle;

a premium of 7.9 per cent. to Thistle's Closing Middle Market Price of
120.5 pence per share on 29 April 2003, the last business day prior to the
date of this announcement;

a multiple of 9.4 times Thistle's 2002 pro-forma EBITDA; and

a multiple of 30.7 times Thistle's 2002 pro-forma earnings.


Save as set out in this announcement*, the Increased Offer is subject to the
same terms and conditions as those set out in Appendix I to the Original Offer
Document which shall be deemed to be incorporated in and form part of this
announcement.

General

The Increased Offer remains open for acceptance until 3.00 p.m. (BST) on 2 May
2003. Thistle Shareholders who have not already done so should complete and
return their Form of Acceptance as soon as possible.

Breaking news ...... Thistlr board have jst said they will look at the increased offer