Six Continents was created from Bass

But the pub and hotel giant has wasted no time in retaliating, suggesting Mr Osmond's proposal was "fundamentally flawed".

Mr Osmond said any bid for the pub and hotel group would rely on the demerger of the two businesses not going ahead.

Six Continents runs the world's largest hotel group - including the Intercontinental and Crowne Plaza chains - as well as an extensive pub portfolio which includes the O'Neills, All Bar One and Harvester chains.

It announced plans in October to split itself into two separately listed companies.

But Mr Osmond, founder of the Punch Taverns pub group, claims this is latest in a series of ill-advised moves.

Under-delivering

"Shareholders deserve better, and they deserve it now," Mr Osmond said in a statement to investors.

The entrepreneur, who also developed the PizzaExpress restaurant chain, has built up a small stake in Six Continents through the investment vehicle Capital Management and Investment (CMI).

He claimed: "Six Continents has delivered unacceptably low returns over recent years."

Hugh Osmond: "The demerger is wasteful"

Mr Osmond cited examples such as the sale of the Gala bingo division, and purchase of the InterContinental hotel chain, as proof that the Six Continents board has failed to deliver.

"[It has] invested a net �2.8bn in its businesses since 1998 and yet seen operating profit reduce by �217m.

"Six Continents' demerger proposals are the but the latest in a succession of decisions which have failed to deliver value."

Market boost

Six Continents immediately defended itself.

Mr Osmond had tried to buy the pub estate

"(Demerging) will allow both businesses to develop in a focused manner for the benefit of all shareholders".

It also suggests CMI's proposal to break up the hotel business was "fundamentally flawed" and came from a team which had "no experience in the sector, nor in the management of global brands."

Six Continents revealed that Mr Osmond had already approached Six Continents in October with a view to taking over the pubs business.

But it said the offer was "unattractive" even then.

Market lift

Estimates for the takeover value of Six Continents vary from �4.8bn ($7.6bn) to �8bn ($12.7bn).

Its shares continued to rise - closing up 4% at 615.5p on Thursday - on news of the possible bid, giving the firm a stockmarket market value of �5.3bn.

The group was created from Bass after it sold it sold its brewing business but has been hit by the global slowdown in the hotel business since September 11.

Its shares have fallen from about 770p to about 470p in the last year, before speculation of a bid began.