The billionaire Barclay brothers sold their 10 percent stake in the U.K.’s InterContinental Hotels Group Plc for about 335 million pounds ($520 million) after the hotelier’s shares soared 88 percent in a year.
InterContinental tumbled 7.4 percent in London trading after Barclays Capital sold almost 30 million shares on behalf of Ellerman Corp., a company controlled by David and Frederick Barclay, for 1,120 pence apiece, according to three people familiar with the transaction.
Ellerman, the biggest shareholder in Windsor, England-based InterContinental, sold its entire stake following a 34 percent surge in the share price since the start of 2010. The Barclays built their stake in InterContinental in 2007, fuelling speculation that the brothers may make a bid for the hotelier.
Leslie McGibbon, a spokesman for InterContinental Hotels, declined to comment when contacted by Bloomberg News today. Calls to Ellerman were not returned.
InterContinental slumped 89 pence to 1,110 pence at the close of trading in London, the steepest percentage drop since June 4, 2007. That valued the company at 3.2 billion pounds.
InterContinental confirmed in a statement that Ellerman no longer has a holding in the hotelier.