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Forte says 5,000 jobs threatened

John Shepherd
Thursday 14 December 1995 00:02 GMT
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Forte yesterday claimed that Granada's reputed boast that it could save pounds 100m in costs if its pounds 3.3bn hostile takeover bid succeeds could affect up to 5,000 jobs, equal to one in 10 of the workforce.

A spokeswoman for the besieged hotels company said: "We don't think they can do it [save pounds 100m]. Our wage costs are the lowest in the industry."

A breakdown of Granada's savings figure in recent press reports showed that the television company aimed to lop pounds 40m off Forte's purchasing bills, pounds 35m from central costs and pounds 30m from the payroll, she added.

Forte yesterday requested the Takeover Panel to ask Granada for "formal clarification" of its claims that it could save pounds 100m. The panel does not comment on individual aspects of a bid unless it makes an official ruling.

A spokesman for Granada accused Forte of "mischief-making". He added: "We are totally confident of our analysis of this underperforming business." Granada has made no official statement on the cost savings it could extract from Forte.

Meanwhile, rumours are intensifying that a disposal of Forte's White Hart chain of hotels is imminent.

City Diary, page 22

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