Regent quits field after rejection of 975p Urbium bid

by The PMA Team

Regent Inns has ended all discussions with West End bar operator Urbium after the rejection of its latest offer, which was worth 975p a share.

Regent described the end of takeover talks as a lost oppor-tunity for both companies' shareholders. Bob Ivell, executive chairman of Regent, said: 'I regret the decision by the Urbium board not to co-operate with Regent Inns' proposal, which I believe would have increased value for both groups of shareholders. However, 975p was a fair offer and we're not going to overpay.

'I [believe] there is a need for consolidation among high-street operators in order to gain the critical mass necessary to succeed in a competitive and regulated environment.

'There are other opportunities available and we will continue to evaluate those that we believe have the potential to generate shareholder value.

Industry observers believe Inventive Leisure and nightclub company Ultimate are possible targets. Regent is barred now from bidding for Urbium for six months unless the Urbium board invites it back or another bidder emerges.

Urbium has indicated that it has had 'serious expressions of interest and conditional offers from other reputable parties.

Private-equity bidders Char-terhouse the new owner of Barracuda and Electra are rumoured to be interested in buying the company. Urbium has stated that prospective bidders will need six weeks to formalise their offers.

A source close to Regent Inns said: 'Every venturecapital company we have spoken to has said it can't make an acquisition model for Urbium work if it pays over £9 a share.

By mid-afternoon on Monday, Urbium shares had fallen back by 56p. Analyst Mark Brumby, of Oriel Securities, thought that Regent had given itself room to return to Urbium in a number of circumstances.

He said: 'On our reading, only an uncontested, first-strike hostile bid has been excluded.