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Whitbread shares soar as activist investor builds stake

From BBC - April 16, 2018

Shares in Whitbread soared by 6.6% after it emerged that an activist investor has built a stake to become the largest shareholder in the company.

Elliott Advisors confirmed at the weekend that it now holds a stake of more than 6% in Whitbread.

According to reports, Elliott Advisors wants Whitbread to be split into its Costa Coffee chain and its Premier Inn business.

A spokeswoman for Whitbread declined to comment.

Whitbread's shares rose to 41.95 in early stock market trading.

Elliott Advisors is the second activist investor to build a substantial shareholding in Whitbread, which also owns Beefeater and Brewers Fayre brands as well as restaurants Thyme, Bar + Block and Table Table.

US hedge fund Sachem Head has a 3.4% stake in Whitbread and has pressed the management to consider a break up of the business as well as a sale and leaseback of its Premier Inn hotel properties.

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