Leisure group De Vere, owner of The Grand in Brighton, has moved closer to thwarting attempts by a major investor to force the sale of its UK hotels.

GPG Holdings, which already owns ten per cent of shares, said only 0.13 per cent of shareholders had accepted its £118 million offer to lift its stake in De Vere from ten per cent to 35 per cent.

But GPG refused to call off its campaign and pledged to write to shareholders to outline its reasons for seeking the sale of the hotels.

Directors of De Vere said because only a handful of investors were willing to sell their shares, it supported their view that the offer from GPG was 'wholly inadequate' and a distraction.

Friday May 14, 2004