Activist Hedge Fund Pushes Holiday Inn Owner To Sell

Aug 5 2014 | 5:35am ET

Marcato Capital Management has noticed the growing wave of so-called tax inversions that see U.S. companies buying overseas companies to reincorporate outside of the U.S. and avoid some taxes. The hedge fund hopes that InterContinental Hotels Group has noticed, too.

If it hasn’t, Marcato has hired an investment bank to help it, asking Houlihan Lokey to explore a sale of InterContinental, which it owns about a 4% stake in. Marcato has been urging InterContinental, which owns the Holiday Inn and Crowne Plaza brands, to put itself up for sale, calling it “a unique opportunity to reshape the global hospitality industry."

Yesterday, Marcato made clear that the window for that opportunity may be closing.

“Current, favorable market conditions presently exist to significantly enhance IHG shareholder value, which may not be available in the future,” it said.

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