Despite months of rumors and speculation, Six Continents' proposal to split its hotel and soft drink business from its retail division, in order to create two separate companies, went effective Tuesday.

The initial proposal, announced last October, renames the Six Continents hotel group to its luxury line, InterContinental Hotels Group, while the retail business becomes Mitchells & Butlers.

All the conditions of the previously planned de-merger have now been satisfied, according to a company statement, and Intercontinental will succeed Six Continents' registration under "IHG" in accordance with the U.S. Exchange Act of 1934. Trading for both companies commenced Tuesday on the London and New York stock exchanges.

"Today marks a new beginning for Intercontinental Hotels Group PLC. With our new management team, I am confident that we will transform this business," said Richard North, the Chief Executive of InterContinental Hotels Group.

To prepare for the split, Six Continents assembled a new senior team to run the organization last October, headed by North. Steven Porter will continue in his role as President of the Americas, while Kirk Kinsell has returned as Senior VP of Americas Franchising.

"I truly believe this is the best team in the hotel industry anywhere in the world and fully capable of realizing our vision," said Chairman, Sir Ian Prosser at the Six Continents investor's conference last November.

In recent months, Six Continents made headlines when entrepreneur, Hugh Osmond, announced that his company Capital Management and Investment (CMI) was considering making an offer for the hotel group. Tensions heightened with talk of a hostile takeover, but rumors of the deal soon subsided with severe opposition from owners who feared a massive restructuring.

As per the satisfied de-merger, shareholders will, on April 23, 2003 be sent share certificates in respect of their holdings in IHG and MAB as well as a check in respect of the return of capital and in respect of any entitlement to any fraction of an MAB and IHG share. CREST accounts will be credited with the return of capital on April 23, 2003, according to an Intercontinental statement.

"The most global hotel company now has a clear and robust strategy, a truly global brand portfolio, significant global scale, a wealth of talent at all levels of the company and tremendous opportunity to grow in a number of markets," said North.