Hugh Osmond: Rival to takeover Six Continents?

Marriott, while operating more than 2,000 hotels worldwide, has held talks with US buy-out firm Texas Pacific Group and UK private equity firm CVC about mounting a joint bid, the Financial Times said.

Marriott chiefs are planning to launch the bid with the support of the Six Continents board, the paper added.

The report presents the prospect of a bidding war between the Marriott-led consortium and entrepreneur Hugh Osmond, who tabled a �5.6bn offer on Monday through his Capital Management & Investment vehicle.

Mr Osmond's offer, slated by the Six Continents board as giving shareholders "nothing they do not already own except significant risk", would see the firm kept as one business, at least for the short term.

Marriott's plans could see the group divided, with CVC said to be keen to buy Six Continents' pub division, which includes the All Bar One and O'Neill's chains.

Marriott had previously held talks with Mr Osmond over joining his bid.

Key meeting

Six Continents shareholders are scheduled on 12 March to vote, at an extraordinary general meeting, on the firm's own plans for splitting the firm into two.

Directors have so far rejected pleas to postpone the meeting while Mr Osmond's bid is further assessed.

But at least one group of shareholders is maintaining pressure for postponement, the FT said.

"These investors are going to persuade [the board] that they should be reasonable and postpone it," a source told the newspaper.

Capital Management & Investment on Friday urged shareholders to at least vote against the demerger if the meeting went ahead.

"You lose nothing. You gain time to make a proper choice," CMI said.

"The board of Six Continents can always... repropose the demerger at the end of the offer period."

Six Continents shares stood 14.5p lower at 590p in afternoon trade on Friday.