BSkyB’s anger centres on the fact that the merged outfit will be in a position to control six ITV franchises 50

BSkyB’s anger centres on the fact that the merged outfit will be in a position to control six ITV franchises, 50 per cent of ONdigital, three national newspapers and have a 29 per cent stake in Channel 5. Granada is expected to call for a wholesale review of the regulatory framework in an attempt to hasten the creation of a single ITV broadcaster.Carlton and United, which between them will control 36 per cent of advertising sales should the deal go ahead, are anticipating that the OFT will relax the current threshold of 25 per cent to allow the deal to take place.BSkyB, the pay-TV company 40 per cent-owned by Rupert Murdoch’s News Corporation, is also thought to be furious about the implications of the merger. That would almost certainly involve the forced sale of at least one prime ITV franchise.Instead, Granada is likely to focus its opposition on a revised submission to the Office of Fair Trading, which is conducting a review of the rules governing the ownership of ITV franchises. The bid for SMG has been forced on Granada chairman Gerry Robinson by Friday’s announcement of an pounds 8bn merger between United News & Media and Carlton.
Granada is thought to be wary of a direct challenge to its rivals’ merger with a hostile bid for either United News or Carlton. GRANADA is poised to launch a full bid for Scottish Media Group, valuing its fellow ITV broadcaster at more than pounds 600m, even though relations between them have been soured recently by SMG’s pounds 225m bid for Chris Evans’s Ginger Media Group. He also attempted to attract more business customers.However with the retirement of Mr Pajares, who has gone to run Hand Made Hotels, the new venture backed by Guy Hands, the arch investor from Nomura, Blackstone has change tack.It has cut head-office costs and is running the group from New York, with the general managers largely autonomous, and has attempted to save money by revoking discounts given to former directors..

The London hotel market is now in a lull because of two separate developments – the building of a number of new hotels bringing new supply at the top end of the market and the disappearance of certain potential trophy buyers, such as the Sultan of Brunei, from the market.The decision to break up the group comes after attempts by Blackstone to improve the profitability of the hotel group to justify the pounds 520m price tag, which equates to nearly pounds 1m per room.Ramon Pajares, who retired as managing director of Savoy earlier this year, made a series of changes, including weeding out many of the old retainers who had been working for the company and offering them early retirement. It was only after the Forte group was purchased by Granada that the stake it had built up in the Savoy was sold.However, the decision to sell to Blackstone appears to have been extremely well judged. However, the hotel, a favoured haunt of peers, business leaders and ladies who lunch, has not yet been put on the market.The attempt to sell off parts of the Savoy Group portfolio are sure to bring howls of protests from many of the people who objected to the Savoy being sold to Blackstone.An adviser to the group suggested that Sir Hugh Wontner, the former chairman of Savoy who dominated the company for more than half a century, would be turning in his grave over the sale of the hotel company.For years, Sir Hugh and his successors resisted attempts by Lord Forte, the father of Sir Rocco, to take over the hotel group and add it to his Trusthouse Forte chain. It is understood to have received a number of approaches and a bid of pounds 50m might secure the prestigious property.Rival hoteliers have suggested that Blackstone might even think the unthinkable and sell Claridge’s, one of the two true trophy assets in the Savoy portfolio.

The Mayfair hotel, restaurant and apartment block complex is in need of refurbishment, and Blackstone is not convinced it would recoup the investment that is needed. However, the deal foundered on price, with the Americans wanting more than pounds 150m for the five-star hotel, which boasts two of London’s leading restaurants, Vong and La Tante Claire, and is a favourite of top businessmen.A leading hotelier told The Independent on Sunday: “Though the Berkeley is not formally up for sale, it’s well known to be available.”Similarly it is understood that Blackstone is sounding out potential buyers for the Connaught. THE SAVOY Group is to be broken up by its US owner, Blackstone Group, in an attempt to recoup some of the pounds 520m it paid for the hotel chain last year. It is understood that the Americans are ready to sell the Berkeley Hotel and the Connaught and may even entertain offers for Claridge’s, leaving just the flagship Savoy Hotel overlooking the Thames left from the prized portfolio.
Blackstone, a US investment fund, has already talked to Sir Rocco Forte about selling the 160-room Berkeley Hotel in Knightsbridge to Sir Rocco’s RF Hotels. Bank of Scotland had always been considered protected from a bid because of the Scottish connection, but this has been invalidated by its bid for NatWest.. It is supporting the offer but is not putting any money into the deal.An agreement between NatWest and Royal Bank would conclude a saga which has involved almost every financial services company in the UK.

Originally, NatWest was to buy Legal & General, but the deal was called off when Bank of Scotland launched its hostile bid.Abbey National, Halifax and Lloyds TSB have all been mentioned as possible bidders for NatWest but Royal Bank, which was rebuffed last year when it made an approach to Barclays, was always the most likely bidder.The failure of Bank of Scotland’s offer for NatWest will now put the pressure on its chief executive, Peter Burt, and make the Edinburgh institution a likely bid target. Stephen Byers, the Secretary of State for Trade and Industry, said on Wednesday that he would not be referring the bid to the Competition Commission. The day after, Bank of Scotland raised its offer from pounds 21bn to pounds 25.5bn.Mr Sandler, who only took over as NatWest’s chief executive last month, is basing his defence on a cost-cutting programme and a plan to sell four of NatWest’s businesses – Ulster Bank, fund manager Gartmore, bond trader Greenwich NatWest and a private equity business.Royal Bank is understood to be keen to keep the private equity side, but to sell the rest.The bid from Royal Bank will be made by the bank alone, and not in partnership with any foreign groups. Banco Santander, the Spanish bank, holds 9.9 per cent of Royal Bank’s shares and has a seat on its board.

This means that the deal would put Fred Goodwin, who is to succeed Sir George as Royal Bank’s chief executive in a year’s time, in effective charge of the combined group. Ron Sandler, NatWest’s chief executive, would have no role.Mr Goodwin has a reputation for cost cutting and is seen by Royal Bank as the ideal person to push though measures to save more than pounds 1bn a year, which all parties in the bid war agree are essential for NatWest to survive and thrive.NatWest’s advisers were yesterday rushing to put out its final defence document against the Bank of Scotland bid. THE BATTLE for NatWest is over. Royal Bank of Scotland is to trump Bank of Scotland’s pounds 25.5bn offer and deliver a knock-out blow. Sir George Mathewson, Royal Bank’s chief executive and chairman elect, spent yesterday attempting to agree a deal with NatWest’s chairman, Sir David Rowland.