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Activist hedge fund Marcato Capital Management on Tuesday again urged InterContinental Hotels Group to merge with a competitor.
Marcato Capital Management released on Tuesday a letter and presentation to InterContinental Hotels (London Stock Exchange: IHG-GB) shareholders urging the firm to merge with a competitor. The strategies outlined could yield a premium of more than 100 percent above the current share price, the hedge fund said. "We believe that IHG is an attractive business with a unique, limited-time opportunity to create significant long-term shareholder value," the letter said. Based in San-Francisco, Marcato owns about 4 percent of the outstanding shares. In response, IHG said pursuing the current strategy remained in the best interest of all shareholders in order to achieve high quality growth. The world's largest hotelier said its board regularly considers all options for driving shareholder value, while the company maintains an active dialogue with all its shareholders and welcomes feedback. In May, Reuters cited a Sky News report that IHG had rejected a £6 billion (about $10 billion) takeover offer from an unidentified U.S. bidder. In October, InterContinental Hotels' subsidiary InterContinental Hotels & Resorts was named "North America's Leading Hotel Brand" for the first time by the World Travel Awards. |
