Four-star hotel operator Hanover International has confirmed that it is in preliminary talks with potential buyers of the 15-strong chain.
The group put itself up for sale earlier this month in an attempt to stave off a £33m bid from multimillionaire businessman Jack Petchey, through his investment vehicle Trefick. Hanover chairman Peter Eyles has urged shareholders to reject Petchey's bid for the group.
"Trefick's offer significantly undervalues Hanover," Eyles told them. "We are seeking a higher offer for all shareholders and, to this end, we are currently engaged in preliminary discussions with other potentially interested parties."
He added: "Trefick currently controls 49.17% of Hanover shares and, without your full support, the board will find it difficult to secure the higher offer you deserve."
Hotel groups Macdonald, De Vere, Menzies and Marston have all been mooted as buyers for the company, as has venture capitalist Alchemy Partners, which already has a presence in the hotel sector, controlling private hotel groups Quintessential and Paramount.
Hanover described Trefick's offer as "opportunistic" and "timed to take advantage of current sector weakness", claiming that Petchey would try to sell Hanover's hotels in the short to medium term, and that the intention to take the company private was nothing more than an attempt to coerce shareholders into taking the offer.