Six Continents retains SSSB for demerger.

(From Financial News (Daily))

Schroder Salomon Smith Barney (SSSB) is building on its long-standing relationship with Six Continents as sole financial adviser on the UK hospitality group's demerger and return of [pound]700m ('1.1bn) to shareholders.SSSB has previously advised on a number of the hospitality group's disposals. The US bank and ING Barings advised Bass on the [pound]2.3bn disposal of Bass Brewers to Belgium's Interbrew in 2000, which is when it abandoned the Bass name in favour of Six Continents. In 1999, Schroders, now part of SSSB, advised Bass on its [pound]995m acquisition of 650 pubs from Punch Taverns Group.

Merrill Lynch and Cazenove are joint corporate brokers to the demerger in which Six Continents' hotels and soft drinks business will be separated from the retail business. Two separate companies will be listed on the London Stock Exchange "offering discrete investment propositions and with clear market valuations".

Six Continents has built up a cash pile of almost [pound]3bn from a series of disposals over the last two years. In January, Hermes, the activist fund manager, wrote to the group demanding a return of cash and for Six Continents to put a halt to its acquisition strategy which it claimed was destroying ...