Jurys talks to preferred bidder

The Jurys Doyle hotel group has entered exclusive talks with one of the bidders for its landmark site in Ballsbridge.

However, the group's advisers have also begun informal talks with Precinct, the consortium that wants to buy the entire company at €16.50 per share, a premium to last night's closing price of €15.75.

After a two-day board meeting during which the Jurys directors discussed their options, the group chose a preferred bidder for the Ballsbridge site.

With talks well underway last night, a price in the region of €260 million was discussed.

The identity of the preferred bidder could not be confirmed, but speculation centred on builder Sean Dunne, who was reported at the weekend to have tabled the highest bid.

The site, which includes the Jurys Ballsbridge and Towers hotels, attracted 13 tenders.

An announcement on the proposed deal is expected tomorrow at the latest, if not today. But any such transaction must be put to an egm, which is not expected to be convened until September.

Precinct must show its hand by Friday, the deadline set by the Takeover Panel for a firm bid for the group, meaning any public commitment to sell the property could yet be upset by a takeover of the group at large.

Any other potential bidders are not expected to declare their interest before then.

While the Jurys directors are understood to have taken the view that they are under no obligation to enter discussions with Precinct in the absence of a firm bid, it emerged last night that advisers for both sides have been talking since the middle of last week.

IBI Corporate Finance is acting for Jurys and Deloitte is acting for Precinct.

Precinct is backed by billionaire brothers Simon and David Reuben, whose wealth could give the consortium the firepower necessary to up its offer in the event of a bidding war.

The consortium is controlled by developer Bryan Cullen, solicitor David Coleman and builder JJ Murphy, who already own the Gresham hotel group.