THE multi-million pound poker game orchestrated between the investment teams advising hotel group Forte and entertainment and leisure group Granada is entering its final phase. The players, Sir Rocco Forte and Granada's Gerry Robinson, have committed most of their chips, now the IOUs are appearing on the table.
Robinson this week turned his latest hand of cards face up, showing an increased offer of £3.8 billion, worth about 373p for every Forte share. The IOU comes in the form of a promise of a special dividend of 47p a share payable to Forte shareholders once his bid is declared unconditional, enhancing the total Granada offer to around 385p a share.
The City liked the terms and piled into Forte shares, lifting the price to 368p by the end of the week. Sir Rocco, naturally, was impassive, dismissing the Granada hand as "more to do with asset-stripping than profit-enhancing management skills".
Sir Rocco can stay his hand at least until Tuesday, January 23rd, when the offer closes. The betting is that Granada may ultimately hold the winning combination.