LONDON (Thomson Financial) - Leisure group Whitbread PLC has been holding
secret talks to merge its Premier Inn budget-hotel business with the rival
Travelodge chain, creating a
3 bln stg hospitality giant, the Sunday Times reported, without citing sources.
Whitbread, which also owns the Costa Coffee chain, is understood to have
been in negotiations with Dubai International Capital (DIC), the Arab investment
firm that owns Travelodge, the newspaper said.
The two sides are thought to have been discussing a deal in which Whitbread
would take over Travelodge, the Sunday Times added.
In return, DIC, which is best known in Britain for its interest in buying
Liverpool football club, would acquire a big stake in the British group, the
paper said.
The talks are believed to be at an early stage and there is no certainty
that they will result in an agreement, it added.
Whitbread was not immediately available for comment.
nick.huber@thomson.com
nh/vs
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