As leisure entrepreneur Hugh Osmond launches his audacious takeover bid for pub and hotel giant Six Continents, BBC News Online examines the offer, and its implications.

Why is Hugh Osmond bidding now, as the group is set to be split in two?

Mr Osmond has harshly criticised Six Continents directors for continually failing to deliver the best returns for shareholders.

He has cited examples such as the sale of the Gala bingo division and purchase of the InterContinental hotel chain, as proof that the group was better at losing money than generating increased value.

"(It has) invested a net �2.8bn in its businesses since 1998 and yet seen operating profit reduce by �217m," he said when the bid talk began.

His key objection immediately prior to the bid was Six Continents' proposed split into separate pub and hotel companies.

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

He argues that the planned demerger - which would cost about �100m just for the process of splitting and creating two businesses - is the latest in a long line of moves where directors have failed to capitalise on company assets.

Six Continents, meanwhile, refused to delay its shareholder meeting, scheduled for 12 March, to vote on the demerger.

Mr Osmond was therefore forced to act quickly.

How does Mr Osmond think he can make a better job of things?

He argues that more value can be created by selling off some assets, notably within the hotels portfolio, and focusing on squeezing more profits from what is left.

Mr Osmond estimates that, through his company Capital Management and Investment (CMI), he can raise about �5bn from selling hotels to rivals such as Hilton, or to venture capital groups.

He is then thought likely to bring in a new team to run chains such as InterContinental, Holiday Inn and Crowne Plaza.

And he may also sell the group's drinks business, Britvic, which has been underplayed in the company's asset portfolio.

Mr Osmond would take on the running of the remaining pub estate.

His aim is to create a business worth more than its estimated break-up value of about �7.5bn.

What is in it for him?

Reports have suggested the entrepreneur will take 20% of any gains generated from the Six Continents assets.

That could see him and his team earn �200-300m in the next two years.

It also fits with the personality of a serial entrepreneur whose much-quoted motto is: "Act decisively. Use maximum force. Do it today."

It sounds good in theory, but does Mr Osmond have relevant takeover experience?

Mr Osmond is a well-known corporate raider, with a penchant for controversial deals.

He is best known for his PizzaExpress deals which saw him, with Luke Johnson, buy the chain in 1993 for �18m.

The pair then floated it on the stock market, and watched its value hit �701m in 1999.

Mr Osmond stepped down as an executive director in 1997 - before the slide in PizzaExpress shares to nearer 250p last year - and used most of his fortune to buy clusters of pubs.

Ironically, his biggest purchase was the 1,500 pubs he bought from Six Continents (then called Bass) which formed the basis of pub group Punch Taverns.

Punch became famous for its audacious �2.75bn purchase of Allied Domecq's pubs.

In a deal not unlike the current Six Continents scenario, Mr Osmond swooped on Allied, scuppering a previously agreed �2.4bn takeover by Whitbread.

And how did Punch fare?

Mr Osmond gradually sold his stake in Punch to private equity firm Texas Pacific, before the group was floated on the stock market last year.

The stock was listed at 240p per share and has since slumped to 155p.

Mr Osmond, it seems, makes cash for the short term.

He does not plan on hanging on to Six Continents for long either.

Mr Osmond has admitted hotels are not his bag, he is simply taking on the group to it sell off different hotel chains.

Why don't these other firms just bid for Six Continents now rather than going via Mr Osmond?

Analysts believe rival hotel chains are happy for CMI to do the leg-work, then cherry-pick the hotels they want.

Six Continents is a vast conglomerate, with a market value of more than �5bn - much too large for some of the smaller groups to take on as a whole.

Also, now that Mr Osmond's offer is on the table, any counter bid would probably have to be of a higher value.

What can the Six Continents management do to stop the takeover?

Shareholders will have a chance to vote on the demerger of 12 March.

Ms Osmond says his bid will only go ahead if the split does not happen.

Six Continents has already upped its proposed savings from the hotel split by �60m and some analysts believe investors are prepared to back the original plan because they had called for the split.

"For many shareholders, the demerger has taken a lot of convincing," Alan Miller, a leisure analyst at Old Mutual Securities, told BBC News Online.

"Management should probably just stick to its guns."