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REGUS TO LAUNCH HQ GLOBAL TAKEOVER ATTEMPT

Shared through ExecSuites News Group

Regus to launch HQ Global takeover By Martin Cej, CBS.MarketWatch.com Last Update: 5:37 PM ET June 3, 2001
LONDON (CBS.MW) - Regus, a British provider of temporary offices and services, is preparing to launch a $650 million all-stock bid for HQ Global of the U.S., according to press reports Sunday. The move will allow Regus to boost its size in the U.S. at a time of diminishing demand among technology companies and other start-ups, the FT.com reported. No one at Regus (REGS: news, msgs, alerts) (UK:RGU: news, alerts) or Dallas-based HQ, which is a unit of Frontline Capital Group (FLCG: news, msgs, alerts) , was immediately available to comment.

Regus operates about 370 offices worldwide, according to its website, while the majority of HQ's 460 offices are located in the U.S. Merrill Lynch is advising Regus on the deal while Salomon Smith Barney is representing HQ. The offer would require Regus to issues new shares below its IPO price of 260 pence a share last year, according to FT.com.  Regus' Nasdaq-traded shares fell 25 cents to $17.45 Friday, while Frontline was unchanged at $4.

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06/03/2001 Dow Jones International News (Copyright (c) 2001, Dow Jones & Company, Inc.) 

LONDON -(Dow Jones)- Regus PLC (REGS), the GBP1.5 billion serviced office operator which floated in October last year, is poised to buy its largest rival, U.S.-based HQ Global Workplaces, in a share deal thought to be worth at least $650 million, the Sunday Telegraph reports. 

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Reuters English News Service (C) Reuters Limited 2001. 

LONDON, June 3 (Reuters) - British-based service office provider Regus Plc is poised to buy its major rival, U.S.-based HQ Global Workplaces, in a deal that could be worth $650 million or more, Britain's Sunday Telegraph reported.  The newspaper said in an unsourced report that Regus was believed to be close to finalising a deal with the U.S. firm, a move that would give Regus a bigger exposure to the U.S. market.  Regus is one of only a handful of companies building international networks of business centres where office space, complete with secretarial and technical support, can be rented for anything from a few days to many months. The Sunday Telegraph said the Regus first approached the company in November, but no deal was reached. 

Regus officials were not immediately available for comment.

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