11th Nov 2014 17:23
LONDON (Alliance News) - InterContinental Hotels Group PLC late Tuesday again rejected calls by Marcato Capital Management LP, the San Francisco-based investment manager, to "explore the idea of a larger hotel group".
Earlier Tuesday, Marcato Capital, which owns around 4% of IHG's shares, released a letter to IHG's shareholders outlining the results of an independent evaluation of "various potential strategic alternatives" conducted by Houlihan Lokey, Inc, which it said would create "significant, long-term shareholder value".
"Marcato...encourages all of its fellow shareholders...to reach out to the board and management and urge them to conduct a full and formal evaluation of strategic alternatives to enhance shareholder value," it said in its letter, stating that "an equity combination could deliver a premium upwards of 100% over IHG's current share price".
Back in May, Marcato Capital urged the hotels group to consider a merger or takeover. IHG rejected the idea at the time.
On Tuesday, the owner of the Crowne Plaza and Holiday Inn chains maintained its stance in a statement issued after the market close. IHG said that while it has reviewed Marcato's analysis, it will continue pursuing its "current strategy".
"The board has concluded that it remains in the best interests of all its shareholders to continue to pursue its current strategy for high quality growth and delivering strong operational and financial performance," IHG said.
IHG shares closed 3.4% higher Tuesday at 2,537.00 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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