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$10 billion is not enough – IHG rebuffs mystery offer

May 29, 2014 Corporate, Headline News No Comments Email Email

egtmedia59Some big offers are doing the rounds in the hotel industry. In one of them, Intercontinental Hotels Group (IHG) has reportedly rejected a USD 10 billion approach from a mystery American buyer.

The board of the Holiday Inn and Crowne Plaza operator is understood to have met to consider the offer before deciding that it undervalued the business, Britain’s Daily Express reported.MICE-Asia-Pacific-Expo

IHG runs 4600 hotels in 100 countries across the Holiday Inn, Holiday Inn Express, Crowne Plaza, Hotel Indigo, InterContinental, Staybridge Suites and Candlewood Suites brands. It has been tipped as a takeover target for a specialist investment fund, or a rival such as Starwood Hotels.

Rumours suggested Starwood may have been connected with the latest approach to IHG, but neither company made any comment, the Express reported, adding that IHG’s move to buy back its own shares meant it was not engaged in live takeover talks.

During the first quarter of this calendar year IHG enjoyed its strongest revenue-per-room performance for nearly two years.

Meanwhile, on a separate front, a new suitor has emerged for Club Méditerranée – already the target of a Chinese-led partnership.

Italian businessmen Andrea Bonomi, who already owns an 11% stake in Club Med, has confirmed he is considering launching a takeover for Club Med through a private equity fund he controls.

Rival bidder Fosun International and its partner, investment firm Ardian, are saying little. Between them, Fosun and Ardian own 40% of Club Med. Their initial offer of EUR 17.50 a share expired last Friday.

Written by : William Sykes

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