LONDON (Alliance News) – Whitbread PLC confirmed on Monday that US activist hedge fund Elliott Capital Advisors LP holds a 5.30% interest in the company following a transaction last Wednesday.
On Sunday, the Financial Times had reported that Elliott Advisors became the largest shareholder with a 6.0% stake.
The newspaper reported that Elliott had presented Whitbread with a plan to split the firm through a demerger of its Premier Inn and Costa Coffee divisions. This was on the grounds that demerging Costa would be less likely to derail the coffee chain’s three-year turnaround plan, as opposed to a sale.
Last year in December, US hedge fund Sachem Head acquired a 3.4% stake in Whitbread, and made a series of demands to the group including a split of the business, the sale of property assets, and a share buyback.
Shares in Whitbread were up 6.2% at 4,180.00 pence early Monday, the best performer on the FTSE 100 index.
By Dayo Laniyan; [email protected]
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