BREWER and hotelier Vaux has received an approach from an unnamed bidder.
In a brief statement yesterday morning, chairman Sir Paul Nicholson said the Sunderland-based company had received a ''totally unsolicited'' approach with a view to the board making a recommendation.
He advised shareholders to take no action and added that the board believes the potential and prospects for Vaux are excellent.
The shares soared 43.5p to 345p to value the Waggle Dance beer-to-Swallow Hotels group at #495m.
Vaux immediately got in touch with financial adviser Noble Grossart, where chairman Sir Angus Grossart refused to give any indication as to the identity of the bidder.
Vaux has been the subject of takeover speculation for many years and for a considerable period only the dismal trading prospects in the pubs and brewing operations in the North-east of England and around Sheffield provided much of a deterrent.
There was much debate as to who would be interested although the general feeling was that it is either a hotel owner or a financial buyer such as Nomura, which has been particularly prominent in the past two or three years in the drinks sector.
Stakis steadfastly refused to comment - at one time the two companies had a joint marketing agreement for their then similarly-sized hotels portfolio.
Scottish & Newcastle is, at present, not interested in hotels and can be ruled out, as can Whitbread which owns the Marriott hotels in the UK. The same goes for Greenalls which controls De Vere hotels as well as a near 2400-strong pub estate.
Swallow Hotels is the jewel in the Vaux crown. Under Peter Catesby the hotels have improved in quality and in profitability with the 32-strong chain's like-for-like profits up 14%, at #12.1m, in the first 24 weeks of the current year - exactly half the group total before central charges.
The hotel chain is seen as the only part of the business that will generate continuing
substantial growth.
Martin Grant from Allied Domecq Leisure has been appointed as the new chief executive as Sir Paul gives up his executive position.
He has a primary charge to improve the profitability of the 840 or so pubs which are seen as underperforming.
Analysts have criticised Vaux as being too slow to respond to the large destination pubs that are being opened by competitors.
The brewing and wholesaling side of the business brought in just 7% of operating profits and Sir Paul has been under
pressure to sell it.
He is adamant that it will be retained although sentiment towards a business over 100 years old undoubtedly plays a part in his decision.
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