The Times newspaper has reported that billionaire private investors the Reubens brothers have built up minority stakes in Whitbread and Rank Group, heightening bid speculation.
Whitbread recently sold its conference and banqueting site in the City for £55m and announced several senior head office redundancies in a move to reposition itself.
Speculation suggests chief executive Alan Parker’s disposal of the underperforming Marriott hotel chain earlier this year has increased the company’s attractiveness to private bidders.
The Reubens brothers were part of the team bidding with Precinct Investments for Irish hotel chain Jurys Doyle, but have since ended their chase for the company.
Private equity firms Permira and CVC have also been linked with Whitbread.
Rank Group's Hard Rock division enjoyed healthy profit growth last year as sales at its cafés increased and the brand extended into the hotel sector, but its important merchandise sales figures remained sluggish. Rank is in the process of selling off its film business.
By Chris Druce
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