Oslo-based Eiendomsspar and Sweden’s Pandox have increased their holding in possible hotel target Dalata Hotel Group to nearly 10% — but may lose out in the battle to buy the company to a bid from an Anglo-American consortium.

In a regulatory note, Dalata confirmed that on Friday, the Pandox consortium purchased nearly 1.7 million ordinary shares in Dalata at a price of €6.30 per share, representing approximately 0.8% of the issued share capital of Dalata.

“Consequently, any firm intention to make an offer for Dalata by the consortium … if made, will be at a price of not less than €6.30 per share. There can be no certainty that any offer will be made,” the Scandinavian group said in a statement.

The rebuttal came as a report from Green Street News suggested that a joint venture between London & Regional Properties and Davidson Kempner Capital Management had edged ahead in the race to buy Dalata at a price valuing it at more than €1.3B. It cited Starwood, Bain, Apollo, TPG and KSL as other potential bidders.

L&R is one of the largest UK owners of midmarket hotels.

Pandox is not part of the formal bidding process, but on 2 June, Dalata’s board received an unsolicited, nonbinding proposal from the Pandox consortium regarding a potential cash offer for its entire issued and to-be-issued share capital of €6.05 per share.

Pandox had declined to enter the group’s formal sales process, which launched on 6 March. On 3 June, Dalata's board unanimously rejected the possible offer, saying it “materially undervalued” the group — Ireland’s largest hotel company, with sites also in the UK and Europe — and its prospects.

The latest acquisition means that the consortium has built its holdings to approximately 9.6%, but it is yet to make an offer at that level or submit any further proposals to the board, according to Dalata.

“Shareholders are advised to take no action in relation to the Pandox Consortium announcement,” Dalata said in a statement.

In accordance with Irish takeover rules, the Pandox consortium must either announce a firm intention to make an offer for Dalata no later than 5pm on 15 July, or announce that it does not intend to make an offer for the group.