The directors of Jurys Doyle have rejected the second approach from the Precinct consortium, which valued the hotel group at slightly more than €1 billion.
The decision to rebuff the €16.25 per share offer was made public in a statement issued after the Dublin market closed yesterday. Jurys shares finished 10 cent higher on the day at €15.30.
Valued at €1 per share more than the initial approach, the latest offer represented a 33 per cent premium on the group's share price before speculation about a possible takeover began.
The Jurys Doyle directors met for about an hour in Dublin last night to discuss last week's approach from Precinct.
Their statement said: "The board has now rejected the approach as, in the opinion of the board, it remains preliminary in nature, fails to reflect fully the value of Jurys Doyle and its prospects and the approach is subject to a number of preconditions which the board believes are not capable of being satisfied."
In addition to due diligence requirements, the preconditions are likely to include a demand that all shareholders who are directors of the group commit themselves to selling their stake prior to an offer being made.
Any such demand would refer in particular to members of the Doyle and Beatty families, who own 30 per cent of Jurys Doyle and occupy four seats on its board.
The latest rebuttal drew only a brief response last night from Precinct's spokesman. "We've noted the statement and we're considering our response," he said.
The consortium members are likely to meet in the coming days to decide their next move.
Led by property developer Bryan Cullen, the group includes solicitor David Coleman and Wexford builder and hotelier J.J. Murphy.
The three men are particularly interested in gaining control of a prestigious eight-acre site in Ballsbridge, Dublin, that houses the Jurys Ballsbridge, Berkeley Court and Towers hotels.
If successful, they are likely to demolish the Ballsbridge hotels in favour of a residential development in one of the most fashionable areas of the city.
They are also believed to have a similar plan for the site of the Jurys Montrose Hotel in Stillorgan, Dublin.
The Ballsbridge site has been valued by property experts at some €200 million. However, Merrion Stockbrokers said last week that the second approach could put a value of €300 million on the Ballsbridge site.
If its efforts to buy the group are successful, Precinct is believed likely to invite an international management company to operate the Burlington Hotel, also in Ballsbridge.
The entire group comprises 33 properties in Ireland, Britain and the US. The best performer in the group is the 18-strong Jurys Inns chain, which could be sold as a separate entity by a buyer.
