Granada Group Wins $5.9-Billion Hostile Takeover Fight for Forte
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LONDON — Granada Group won its $5.9-billion hostile takeover battle for Forte and will soon be putting on the world’s largest hotel sale.
Granada will put more than half of Forte’s up-market assets up for grabs in a $3.15-billion sale. Included will be the Meridien and Exclusive chains and Forte’s roadside service stations, Granada Chief Executive Gerry Robinson said. Granada will also implement a $150-million cost-cutting program, he said.
Granada said Tuesday that it controls 66.68% of Britain’s largest hotelier and is still counting acceptances. The British leisure company won the votes of more than 647 million shares and the support of Forte’s largest shareholder, Mercury Asset Management.
Granada’s victory concludes a nine-week fight. Granada is seeking to boost its leisure operations, which include Britain’s third-largest contract caterer. Forte is the company’s fourth major acquisition during the five years Robinson has led the company.
Mercury Asset Management, Britain’s biggest fund manager, clinched the victory for Granada when it agreed to sell its 14.1% stake in Forte ahead of the close of the bid. Mercury, the largest shareholder in both Granada and Forte, was seen as vital to victory for either side.
The battle’s outcome was a huge blow to Sir Rocco Forte, who four years ago inherited control of the hotel and restaurant empire.
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