Jurys shares rise on expectations of improved Precinct offer

Shares in Jurys Doyle climbed nearly 3 per cent yesterday amid growing expectations that Precinct, the consortium bidding for the hotel group, would table an improved offer next week.

The new approach is expected to come at a level close to €16.50, compared to Precinct's most recent move at €16.25. Next week's approach is also likely to drop the pre-condition that it be recommended unanimously by the Jurys board.

This condition caused particular problems for the board on the occasion of Precinct's last bid, with the Doyle and Beatty families, who together control 30 per cent of the company and sit on its board, known to have opposed the approach.

Instead of requiring a unanimous recommendation from the Jurys board, the new Precinct approach is expected simply to require the approval of a board majority.

Precinct, which is controlled by developer Bryan Cullen, solicitor David Coleman and builder and hotelier, JJ Murphy, is expected to stick with a requirement that its offer be accepted by the holders of 80 per cent of Jurys shares. It is thought, however, that this limit could be reduced at a later date.

It emerged yesterday that Deloitte, which is advising Precinct, had appointed Goodbody Corporate Finance to assist it in the takeover process. Goodbody is expected to liaise with the institutional investors that hold more than 60 per cent of Jurys Doyle, while Deloitte will continue to lead the bid.

A spokesman for Precinct said the group had appointed Goodbody Corporate Finance because there "may be a requirement to talk to financial institutions in the future".

The market is now expecting a fresh bid to emerge from Precinct at the end of next week. Last Monday, the Irish Takeover Panel set a deadline of July 15th for Precinct to make a new offer for Jurys or walk away.

"Precinct is obviously aware of the deadline that has been imposed and is considering its response," said the spokesman.

The three-man consortium has secured funding for its bid from a consortium of banks including Anglo Irish. It has also discussed financing with private-equity players in Britain.

Next Friday's deadline falls just days before the deadline set by Jurys itself for tenders on the development of five acres of its Ballsbridge site in Dublin.

Shares in Jurys gained 45 cent to close at €15.75 last night. The increase was notable because it came after Thursday's London terrorist attacks, which had a negative effect on the hotel sector.

Jurys operates seven hotels in London, with one - at Great Russell Street -close to the site of one of Thursday's bomb blast.