MacDonald Hotels and Alchemy aim to scupper Petchey bid for Hanover

MacDonald Hotels, the hotel group being taken private by its management team, is among the frontrunners bidding to scupper a £38m hostile takeover offer for rival hotelier Hanover International.

Shares in Hanover yesterday jumped 1.5p to 127.5p after the group said its efforts to drum up a rival bid was working.

Sources close to the company said Peter Eyles, the executive chairman, was also talking to Alchemy Partners, the venture capitalist run by Jon Moulton. Alchemy is already an investor in the hotel sector, controlling two private companies, Quintessential Hotels and Paramount Hotels.

Mr Eyles implored shareholders to reject a controversial 125p-per-share bid from Trefick, the investment vehicle controlled by Jack Petchey, the property tycoon.

"Without your full support the board will find it more difficult to secure the higher offer you deserve," Mr Eyles said, adding: "Trefick's offer significantly undervalues Hanover. We are seeking a higher offer for all shareholders and to this end we are engaged in preliminary discussions with other potentially interested parties."

Hanover won a small respite earlier this week in its attempts to repel Mr Petchey's bid after the Takeover Panel ruled that Mr Petchey had breached rules by wading into the market after announcing his offer. He has been ordered to ignore the shares he subsequently acquired, leaving him in need of over another 0.83 per cent of acceptances to be able to declare his bid unconditional.

Mr Eyles attacked Trefick's offer as a low-ball attempt to cash in on the weak state of the hotel sector. He said the "quality and location" of Hanover's assets left it "well placed to benefit from any future upturn [in the sector]".

Hanover also suggested that Mr Petchey would probably sell on Hanover if his bid is successful. "Trefick may seek to realise the value of Hanover's portfolio in the short to medium term," it added.