Wake up and float the coffee, Costa owner Whitbread told

Lloyd Doyle
April 16, 2018

Whitbread confirmed that USA activist hedge fund Elliott Capital Advisors now owns a 5.3% interest in the company's shares after transactions last week.

This came after it emerged that activist investor Elliott Advisers had built up a £430m position in Whitbread, making it the largest shareholder.

That sparked a near 7% jump in Whitbread's share price on Monday to £41.97, the highest the stock has been in almost a year. The group's shares have lost almost six percent of their value over the past year, as compared with about a one-percent dip in the Footsie.

Elliott Advisors had confirmed this weekend that it now has over a 6 per cent stake in FTSE 100-listed firm.

Previous year in December, US hedge fund Sachem Head acquired a 3.4% stake in Whitbread, and made a series of demands to the group including a split of the business, the sale of property assets and a share buyback.

The 23 analysts offering 12-month price targets for Whitbread for the Financial Times have a median target of 4,150.00p on the shares, with a high estimate of 4,950.00p and a low estimate of 3,100.00p.

The fund is now joining calls for the company, which also owns Premier Inn and some pub brands, to demerge Costa.

Other reports by Iphone Fresh

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