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Regal's disposal of hotels hits snag

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Regal Hotels International Holdings' plan to sell its North American hotels to Millennium & Copthorne (M&C) may have run into an obstacle.

The company said yesterday it had missed last Thursday's deadline to sign a definitive sale agreement with M&C, a unit of CDL Hotels International.

M&C on September 3 signed a memorandum of general agreement to acquire Regal's interests in 29 North America hotels valued at US$725 million.

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Regal and M&C yesterday refused to explain why the September 30 deadline to finalise the agreement was missed.

Regal said it would continue to hold discussions with M&C 'on a non-exclusive basis', triggering speculation that it might also start talks with other potential buyers for the North American Hotels.

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However, 'we consider the talks to be exclusive', said Gerry DeSilva, a spokesman for CDL Hotels.

Mr DeSilva said the memorandum M&C signed with Regal was binding.

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