InterContinental leaps on takeover hopes

Shares in hotels giant InterContinental Hotels Group jumped more than 6% today amid hopes it could be the next target for a foreign takeover.

Reports over the weekend claimed it had received a £6 billion takeover bid from a US hotels or investment group but it was deemed too low and rejected.

However, it is also believed to be prepared for another attempt with names in the frame including Regis and W Hotels owner Starwood Hotels & Resorts or US investor Barry Sternlicht’s Starwood Capital Group. Experts also said news of the potential bid may tempt other parties to make an offer for the £5.8 billion group.

A spokeswoman for InterContinental, whose brands include Crowne Plaza and Holiday Inn, said the group does not comment on rumour or speculation.

The group, which is the largest hotels group in the world by number of rooms, has been buying back shares and recently said it would return £445 million to shareholders.