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Whitbread Shares Surge As Hedge Fund Activist Builds Up 6% Stakes


Whitbread Plc's shares climbed more that 8 percent on Wednesday as U.S. activist hedge fund Elliott Advisors has said they got hold of 6 percent stake in the British multinational hotel, coffee shop and restaurant company. The investment worth 430 million pounds will make the Elliott Advisors the largest stakeholder of Whitbread.

On Monday, the shares climbed to 4,273 pence on London, highest since June. The shares have been up-trending since April 10.

According to reports, Elliott Advisors is planning for a spin off of Costa Coffee and other businesses. Further, Costa Coffee might be listed separately.

Another U.S. hedge fund Sachem Head holds 3.4 percent stake in Whitbread.

Alison Brittain, CEO of Whitbread has been maintaining that she is open minded about the structure of the business and committed for reviewing.

Under Whitbread, there are 2200 Costa Coffee shops in UK and more than 1300 cafes all around the world. There are 400 restaurants and 760 premier Inn hotels in UK.

Elliot Advisors, founded in 1977 by Paul Elliott, reportedly holds around $31 billion worth of assets. It has the history of pressurising companies in which it hold stake. It has asked Sumsung for a restructure

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