Market report: InterConti falls as bid chatter quashedComments Off on Market report: InterConti falls as bid chatter quashed
No room at the inn for any dealmaking is the clear message from InterContinental Hotels Group.
The rejection of the rumours that have been swirling around the Holiday Inn and Crowne Plaza owner saw its shares slip 111p to 2663p.
The 4% fall dragged IHG to the bottom of the Footsie, halting a 25% rise since the end of September.
Earlier this year, IHG played down speculation of a deal with Westin owner Starwood hotels, but refused to be drawn on rumours of a tie-up with Fairmont Raffles, whose historic hotels include the five-star Savoy on the Strand. Last week, Hyatt Hotels and Ramada owner Wyndham Worldwide were both rumoured to be circling.
However, a statement by the hotel group late on Friday read: “Following recent market speculation, the board of directors of IHG states that it is not considering a potential sale or merger of the company.
Elsewhere, Chinese and Japanese stocks hit 11-week highs despite more evidence of slowing growth from the former over the weekend.
The rise came as investors grew confident of more drastic stimulus measures to inject life into the flagging Chinese economy, as well as an end to a ban on new listings on the Shanghai Stock Exchange by the end of the year.
London-based investors took their lead from the Far East as the FTSE 100 gained 9.08 points to 6362.91.
Asia-focused stocks got the blue-chip index’s week off to a winning start, with Aberdeen Asset Management up 11.8p, or 3.4%, to 359.4p, Standard Chartered — in which Aberdeen is a 9% shareholder — 14.7p better off at 629.4p, and HSBC 9.4p richer at 537.2p.
London Stock Exchange Group gained 3p to 2600p as it revealed that operating margins for its information-services division would increase, driven by revenue growth and cost savings after the merger of the FTSE and Russell businesses.
Scandal-hit Quindell moved to rid itself of its tarnished reputation, proposing a rebrand to Watchstone. Shares rose 0.79p to 98.54p.
A deal in Kenya which saw Maersk buy into three of Africa Oil’s licences lifted Tullow Oil up 35.6p to 253.8p at the top of the FTSE 250. A $407 million (£269.8 million) rights issue to save Lonmin helped the embattled platinum miner shine 1.57p higher to 17.82p, even though the funding is at a 94% discount to last week’s share price.
On AIM, fastjet trundled 0.5p higher to 65.9p after easyJet founder Sir Stelios Haji-Ioannou raised his stake in the struggling, low-cost African airline from 9.9% to 10.8%.
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