De Vere fights break-up bid

De Vere Group is urging its shareholders to reject an attempt by a minority shareholder to force it to break up its chain of hotels and fitness clubs.

Guinness Peat Group, whose nominees hold just over 5% of the company's issued share capital, has tabled several resolutions to be voted on by shareholders at De Vere's annual general meeting on 16 February.

The resolutions would require De Vere to return at least £100m in cash to shareholders, and to separate De Vere Hotels, a chain of 21 upmarket provincial hotels, from the group's other two businesses, Village Leisure Hotels and the fitness club chain Greens.

Chief executive Paul Dermody says De Vere's share price has risen by 20% since the company was restructured a year ago. "De Vere is not an underperforming company, and nor does it have an inactive management team," he said.

He believes the proposals would hinder the development of the company and burden it with an unreasonably high level of debt.