Bosses bag Macdonald for £157m

MACDONALD Hotels has joined the list of companies seeking a life away from the stock market by agreeing a controversial £157m management buyout.

The owner of the Compleat Angler in Marlow, Bucks, and the Randolph in Oxford is being taken private by its management team in a 260p-a-share bid backed by HBOS.

The deal for the Scottish firm comes a month after Macdonald's five founders tabled a 240p offer in frustration at the lack of liquidity in the company's shares.

Critics slammed the initial price as an attempt to buy the business - Britain's seventh biggest hotelier - on the cheap and said there were not enough independent directors to guarantee a fair price.

Donald Macdonald, chairman of bid vehicle Skye Leisure, said the offer was good for shareholders. He added: 'Macdonald Hotels has been under-rated by the market for a considerable time. This has made it difficult to use our stock market listing to develop the business and to incentivise management in the way we would have wished.'

Independent director Calum MacLeod said that the offer was 'in line' with the net asset value. The shares today rose 19p to 258p, having been as low as 171 1/2p in March.

Today's deal comes two days after High Street giant Debenhams agreed a £1.54bn deal with buyout king Permira. In the leisure business, health club operators Holmes Place and Fitness First have also recently sought refuge in the private sector.