The shares of the InterContinental Hotels Group jumped as the company had rejected a takeover bid from a US company according to Sky news.
Sky News reported that the board of the IHG had met and deemed the bid of just over $10 billion too low. Some analysts suggested that the bidder could have been company such as the Starwood Hotels & Resort or Starwood Capital (not affiliated with Starwood Hotels).
There is a current tax benefit for a US companies to merge with a UK one and move their company domicile to Britain.
The market valuations of number of hotel companies.
It would be interesting to know who made the bid for the company that the board rejected as too low. If I have learned anything from the recent airline consolidation in the US (Delta & Northwest, Continental & United, US Airways & AA and Southwest Airtran) is that the consumer is the loser at the end when there is less competition.
I probably should spend some time going through the financials of these hotel companies to find out why InterContinental Hotels Group is valued rather modestly compared to Hyatt or SPG considering the number of hotel they operate.