US fund is now largest investor in hospitality group which also owns Premier Inn
Whitbread’s share price jumped more than 6 per cent on Monday morning following reports over the weekend that Elliott had bought more shares in the company.
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Elliott’s holding is now worth more than £430m, making it the largest shareholder in Whitbread and giving it various voting rights that will allow the investor to press its case for splitting Costa Coffee from the rest of the business.
Whitbread, which also owns the Premier Inn brand, is also under pressure to spin off Costa from another New York-based investor, Sachem Head, which has a 3.4 per cent stake in the group.
Whitbread, which reports its full-year results next week, declined to comment.