Permira pulls out of race for De Vere Hotels

Private equity investor Permira has pulled out of the race to buy De Vere after Alternative Hotels Group (AHG) upped its offer by £43.9m to £767.4m this week.

AHG's two increases from its original offer of 825p per share, to 850p then 875p per share, have proved enough to fend off the competition. Permira had urged De Vere shareholders to hold tight pending a firm bid, but announced on Tuesday that it would not be making a formal offer.

An AHG spokesman said its latest offer had proved to be the "knockout" bid and that the deal could now be quickly concluded. He added: "We hope to bring stability back into the business and want to get on with building and developing a fantastic brand."

AHG now owns 29.9% of the group, having secured the support of two major shareholders, Trefick, Jack Petchey's investment vehicle, and Steve Morgan, a non-executive director.