InterContinental Says Funds Managed by Peltz’s Trian Own 4.27%
InterContinental Hotels Group (IHG), the world’s largest provider of hotel rooms, said funds managed by activist investor Nelson Peltz’s Trian Fund Management LP own 4.27 percent of the company’s shares, according to a statement today. The stock rose the most since Sept. 14.
Peltz, the billionaire Trian chief executive officer, is the largest investor in food-chain Wendy’s Co. (WEN) and is known for pushing companies to increase their share prices.
InterContinental is benefiting from rising demand in emerging markets such as the greater China region, which accounts for about 13 percent of group revenue. About 30 percent of its global expansion pipeline over the next three to five years is centered on the region.
Trian had about $3.4 billion in assets under management as of Feb. 1, according to a March filing. The fund took a 7.3 percent stake in Ingersoll-Rand Plc earlier this month and met with the industrial group’s management about ways to boost the company’s underperforming stock, including restructuring businesses.
InterContinental’s first-quarter pretax profit rose 13 percent to $106 million, the Denham, England-based company said May 9. Revenue increased to $409 million from $396 million. A bid by Marriott International Inc. for the group would be compelling, research firm Numis Corporation Plc said May 29.
InterContinental Hotels climbed as much as 5.6 percent in London trading. The shares were up 5.5 percent at 1,517 pence as of 8:19 a.m.
To contact the reporter on this story: Neil Callanan in London at email@example.com.