Gresham Hotels has confirmed it has been approached about a possible bid by a consortium led by former NCB Stockbroker Mr Nigel McDermott.
The seven-member board of directors met yesterday to discuss this tentative approach and also to decide when it will hold an extraordinary general meeting demanded by its biggest shareholder, the Red Sea Hotel Group. The date is expected to be disclosed later this week.
The group has up to 60 days to call the meeting. There has also been speculation that a management buy-out may emerge.
Gresham shares rose on news of the bid approach. The shares gained 12.3 per cent on the day closing at €1, up 11 cents, to trade at its highest price this year. In earlier trading, shares reached €1.05, the likely price of an offer to shareholders.
Gresham has hotels in the Republic, Britain, Germany, Belgium and the Netherlands.
Last week, Red Sea blocked the re-election of three directors to the board, reducing it from 10 to seven.
At the e.g.m. it is seeking to remove four more directors and appoint three of its own nominees.
Red Sea is seeking to remove Gresham chairman Mr Sean Henneberry, non-executive directors Ms Laura Magahy and Mr Patrick Bourke, and business development director Mr David Bunworth.
Red Sea will be nominating its chief executive, Mr Amos Pickel; British property expert Mr Harvey Soning; and Mr Tom Byrne, a specialist in property finance who formerly headed Davy Corporate Finance.
