Shares in Furama Hotel Enterprises (FHE) and Lai Sun Development jumped after resuming trading yesterday in the wake of Lai Sun's plan to launch a near $7 billion takeover bid for the hotel operator. The rises came despite a lukewarm reception to Lai Sun's move from analysts who were disappointed by the lack of any immediate plan to redevelop FHE's main asset, the five-star Furama Hotel in Central. They said the bidding price was 'too high for a hotel'. FHE's shares shot up 23 per cent to $32 - just under the $33.5 a share at which Lai Sun bought 45.42 per cent of FHE and at which it plans to make its takeover bid for the remaining shares. Lai Sun closed up 5.3 per cent at $8.95. Lai Sun Hotels International (LSHI), was not part of the bid, but its shares rose 7.9 per cent in heavy trading worth $277 million. New China Hong Kong research manager Cliff Shum Kwok-hei said investors speculated Lai Sun would inject FHE's middle market Majestic Hotels into LSHI's Century International Hotels. Lai Sun senior vice-president Jacky Chiu Wai-ki said LSHI would seek co-operation from FHE. 'Target customers of Majestic Hotels are similar to Century Hotels. They will add synergy to each other,' Mr Chiu said. He said any substantial changes would be made after Lai Sun had taken over FHE. He dismissed charges Lai Sun was paying too much, adding: 'Considering the prime location and the flexible management contract terms, we think it is a fair price.' Vickers Ballasassociate research director Desmond Cheung Chi-hung has lowered his profit forecast for Lai Sun in 1998, saying it would face up to $400 million in interest expenses on this purchase. Its gearing ratio would double to 60 per cent as a result, he said.