Shares in PPHE Hotel Group have fallen by over 16% after the firm confirmed that acquisition talks with the Israeli hotel group, Fattal, have closed.

Fattal announced a £930m takeover offer last month for the FTSE 250 UK hotel firm, comprising £22 per share. This represented a 47% premium on PPHE’s share price on 13 November, when the group announced its strategic review, which noted shareholders’ intentions to meet potential investors.

However, Euro Plaza Holdings, which owns 33% of PPHE’s issued share capital, has stated that it is opposed to the proposal.

Therefore, the independent takeover committee has ruled that it would not be prepared to proceed with the offer.

However, PPHE has stated that it has received an indicative proposal from another interested party and that this interest is in the preliminary stages and is currently being assessed.

The PPHE board added that it is mindful that its strategic review process has been a full and thorough process conducted over a period of more than seven months and intends to conclude the process "as expeditiously as possible".

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