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.

Broker Forecasts
Fiscal year end: 2002-12-31
Sales per share: 42.00p (42.00p)
EPS: 5.30p (5.31p)
EPS Growth: -29.24% (-29.09%)
Dividend: 5.14p (5.15p)

Fiscal year end: 2003-12-31
Sales per share: 39.00p (39.00p)
EPS: 5.80p (5.90p)
EPS Growth: 7.41% (12.06%)
Dividend: 5.30p (5.33p)

Fiscal year end: 2004-12-31
Sales per share: 43.00p (43.00p)
EPS: 6.61p (6.80p)
EPS Growth: 15.88% (16.14%)
Dividend: 5.37p (5.48p)


Broker Recommendations
Strong Buy: 0 (0)
Buy: 6 (5)
Neutral: 3 (1)
Sell: 2 (1)
Strong Sell: 0 (1)
Total: 11 (8)

Note: numbers in brackets denote last week's figure

Doesn't happen too often but a retraction from the Telegraph



Thistle Hotels correction
(Filed: 09/02/2003)


On February 2 we reported that Ernst & Young was carrying out a review of Thistle Hotels Plc's business at the request of Thistle's bankers, led by the Royal Bank of Scotland.

Thistle has asked us to point out that neither Ernst & Young nor any other firm has been retained by Thistle's bankers to carry out any such review.

Royal Bank of Scotland is not a lending bank to Thistle and Thistle has no outstanding loans or debts with any bank. We apologise to Thistle.

Times business travel section worth a read with regard to central London hotel rates etc



ains

M+A talk in sector is helping this morning ......

heavier than average volume and mostly buys inc mm helping to push them up the 250 risers board - now 2nd at plus 5%


ains

moving up very fast now and heading the risers @ plus 6.5%


ains

way out in front now at plus 9% ..... could see some short closing soon as they get margin calls


ains

L2 is weird ..... one mm way below the others and in backwardisation



ains

Righted it self now and we are 10p up or 10% on 276k traded :-))

Worth reminding myself that I own a few IZodia shares and would like ORB to find the missing money

ains :-((


Top Stories UK
02/20 00:00
Orb Estates Plans to Sell Thistle Hotels, Morgan Stanley Says
By Linda Sandler and Cecile Gutscher the London newsroom


London, Feb. 20 (Bloomberg) -- Orb Estates Plc, which borrowed money from Morgan Stanley to buy 32 Thistle hotels including the Thistle Kensington Palace in London, has defaulted on two loans and wants to sell its hotels, Morgan Stanley said.

``Orb recently decided to exit the hotel business and is currently in discussions with a number of potential purchasers,'' the second-largest securities firm told Orb bondholders this week, according to a letter dated Feb. 17 obtained by Bloomberg News.

Moody's Investors Service and Standard & Poor's said they may cut some of the ratings on a 531 million-pound ($848 million) Orb hotel bond. Morgan Stanley underwrote the bonds last year after lending Orb money to buy the hotels from Thistle Hotels Plc, a hotel operator. Orb used the bond issue to repay Morgan Stanley.

Gerald Smith, a spokesman for Orb, declined to comment.

``Morgan Stanley can confirm a letter went out to bondholders this week concerning a number of matters related to the Orb group,'' said Alexander Northcott, a Morgan Stanley spokesman.

Last year the bonds, issued by Orb affiliate HOTELoC, received the highest possible rating of AAA at both rating companies, the same grade as the U.K. government, because they were backed by Thistle hotel revenues. Many companies come to the asset-backed market because it's easier to borrow when promising lenders revenues as collateral.

Orb defaulted on two loans to Morgan Stanley and one of its affiliates, according to the bank's letter. If the hotels aren't sold ``in a timely manner,'' Morgan Stanley may appoint a receiver to protect its loans, the letter said.

Shortfall

``Moody's has learned that there may be a shortfall of as much as 11 million pounds in the funding of one or more accounts of the borrower,'' the company said in a statement.

The sale of hotels might also be bad news for bondholders, because Orb had planned to convert three hotels near Hyde Park into high-priced condominiums, according to Moody's. A new owner might not follow those plans, the rating company said.

``With a change in ownership, we need to figure out what's going to happen,'' said Moody's analyst Charles Gamm. The hotels slated for conversion were Lancaster Gate Thistle, Kensington Palace Thistle, and Kensington Park Thistle, he said.

In its letter, Morgan Stanley told investors it hired an outside auditor, Ernst & Young LLP, to review cash flows set aside for bondholders.

The letter mentioned ``adverse publicity'' about an investigation by the U.K.'s Serious Fraud Office into Orb affiliates, and lawsuits brought against members of the Orb Group.

The SFO is investigating allegations by a member of the Orb Group that funds were misappropriated, said Jina Roe, an SFO spokeswoman, in a telephone interview. The SFO and police searched addresses in London and Jersey, she said.

Morgan Stanley in its letter said a sale of the hotels ``should not adversely impact'' the bonds.

Caterer


Orb plans to sell Thistle hotels
20 Feb 2003 18:28

Related Articles


Orb drops Thistle takeover bid

Orb told to put up or shut up

Thistle and Orb in legal fight over hotels payment

Thistle plays down takeover talks

Thistle strikes 600m sale-and-leaseback deal


Jersey-based investment company Orb Estates has decided to sell the 37 hotels it bought from Thistle for 600m less than a year ago.

Under the deal struck last March, Orb bought the properties and then entered into 30-year management deal with Thistle to run them.

But a spokesman for Orb said today that the company had decided to exit the hotel business. "There are a number of interested parties looking at buying the hotels and they are in discussions," he said.

The spokesman was unable to comment on reports that Orb had defaulted on two loans from investment bank Morgan Stanley, prompting its decision to sell the hotels. No-one from Morgan Stanley was available to comment.

Thistle Hotels declined to comment at this stage but is not thought to be too worried about Orb's decision. A clause in the original deal means Thistle has the right of veto over who the hotels are sold to.

The Board of BIL notes the recent movement in the share price of Thistle Hotels
plc ("Thistle"). The Board of BIL confirms that it met on Wednesday 19 February
2003 to consider making an offer for the issued and to be issued share capital
of Thistle which it does not already own, at a modest premium to the then share
price of 98.5 pence*. However, there can be no assurance that any offer will be
forthcoming. A further statement will be made in due course.

off the highs now ..... cannot see too many peeps prepared to accept this kind of price level - bearing in mind the cash they are holding


ains

wide spread now - mostly retail trades - vol now average @ 348k - up 7.5% intraday and well off the highs.


ains


Thistle Hotels may get takeover bid
21/02/2003 12:43


LONDON (Reuters) - Singapore-based investment firm BIL International has said it is considering making an offer for the 54 percent of Thistle Hotels it does not already own.

BIL said it was considering making an offer at a modest premium to Thistles closing share price of 98.5 pence on Wednesday February 18.

At 1225 GMT shares in Thistle , which has been long-considered a takeover target, were six percent higher at 106 pence.


2003 Reuters

Thistle's top investor mulls takeover
21 February 2003, This Is Money

HE major shareholder in Thistle Hotels, Kiwi entrepreneur Sir Ron Brierley, is considering buying out minority investors. Brierley's Singapore-based investment vehicle BIL International said any bid would be at a 'modest premium' to Thistle's closing price of 98 1/2p a share on 18 February.

The shares were ahead 7 1/2p at 107 1/2p, valuing the chain - long considered a takeover target - at 518m. They traded at 151p early last year, and floated at 170p in 1996. BIL currently owns 46% of the stock.



2003 Associated Newspapers

21 Feb 2003 13:19 GMT

UPDATE 1-Thistle Hotels jumps as BIL grasps nettle

(Adds detail, background, updates shares)
LONDON, Feb 21 (Reuters) - Shares in Britain's Thistle Hotels Plc rallied on Friday after Singapore investment firm BIL International BRY.SI said it might make an offer for the 54 percent of London's largest hotelier it does not already own.

BIL, controlled by Malaysian tycoon Quek Leng Chan, said it was considering paying a "modest premium" to Thistle's closing share price of 98.5 pence on Wednesday February 18.

"However, there can be no assurances that any offer will be forthcoming," it said in a statement.

At 1250 GMT shares in Thistle, which has 22 of its 56 hotels in London, were 7.5 percent higher at 107-1/2 pence, valuing the operator of The Royal Horseguards and Thistle Tower hotels at around 518 million pounds ($825 million).

Thistle, which was floated by BIL at 170p per share in 1996, has long been considered a takeover target, with management coming under criticism for poor performance and reluctance to return cash to investors after raising 598.6 million pounds last April from a deal to sell, but retain management of, 37 hotels.

In January, Jersey-based investment group Orb Estates decided against a bid for Thistle after saying last November it was considering an offer at a modest share price premium.

Hotels across the world are suffering from the global economic downturn and a drop in tourism amid fears of war.

This has sparked much broader speculation about mergers and acquisitions.

On Wednesday, pubs and restaurants entrepreneur Hugh Osmond said he was considering an all-share bid for Six Continents Plc SXC.L , the world's biggest international hotel group with chains such as InterContinental, Crowne Plaza and Holiday Inn.

Thistle declined to comment on the statement from BIL.

2:06pm (UK)
Thistle Hotels Shares Rise on Bid Hopes

By Ben Griffiths, City Staff, PA News


The investment firm founded by entrepreneur Sir Ronald Brierley, chairman of Guinness Peat Group, today confirmed it was considering making an offer for the remaining stake in Thistle Hotels it does not already own.

Singapore-based BIL International said in a statement that its board had met on February 19 to consider making an offer at a modest premium to the hotel groups share price, then 98.5p.

BIL already owns 46% of Thistle, Londons biggest hotel operator with 24 of its 56 upmarket hotels in the capital including the famous Royal Horseguards and the Thistle Tower.

Shares in Thistle, which also operates hotels in major cities including Edinburgh, Newcastle and Birmingham, have risen in recent days as City traders looked to cash in on the bid rumours.

As news of the bid was confirmed today, the shares rose another 7.5p or 7% to 107.5p.

But in its the statement, which was issued in response to recent share price movements, BIL said it could offer no assurance that any offer would be forthcoming.

BIL, formerly known as Brierley Investments Limited, was established in New Zealand in 1961 by 65-year-old Sir Ronald. After retiring from the board on the 40th anniversary of the firms founding in March 2001, Sir Ronald became founder president, an appointment for life.

Along with its sector rivals, Thistle has struggled with a slower-than-expected recovery in the global economy which has hampered its efforts to win back customers after September 11.

In January Thistle said its results for 2002 would meet market expectations but added it was difficult to forecast the likely outcome for 2003.

Since the fall in tourists visiting the UK after the terrorist attacks, Thistle has been focused on keeping tight control of costs and on cash generation.

Thistle has previously been linked to bid offers, most recently at the end of last year when investment group Orb Estates expressed an interest in the group.

The offer evaporated in January when Orb said it had decided against pursuing a bid which it had considered at just over the then-share price.
s

Re post 19 and to show that your not just talking to yourself even if you are the only poster :O)

21/02/2003 13:36:06
(Correcting to clarify that Sir Ron Brierley is no longer associated with BIL International Ltd) LONDON (AFX) - BIL International Ltd said it is considering a bid for the shares it does not already own in Thistle Hotels PLC.

Any bid would be at a "modest premium" to Thistle Hotel's closing market price of 98.5 pence a share on Feb 18, BIL said.

BIL currently owns 46 pct of Thistle

:-))


Thistle never attracts much retail interest but money is money

volumes are surprisingly low - would expect any other interested parties to emerge in next few days - currently up 7.5% on the day


ains

I've held my thistle shares from the beginning and watched the advisers make loads of money on all the various schemes and changes since the initial issue. I've never used any of the shareholders benefits, as I've never really had the need/opportunity to do so. I'm making a pretty big loss, not sure how much - cause I've been ignoring them - just bank the divi & other payments they from time to time remember to send us stupid shareholders who got in ...............