>>> Whitbread acknowledges that demerger plans could draw bids for Costa and Pre

Whitbread acknowledges that demerger plans could draw bids for Costa and Premier Inn - report
Whitbread [LON:WTB], an FTSE-100 leisure company, has acknowledged that its plans to demerge its Costa coffee shops business could attract offers for Costa and its hotel business Premier Inn, The Times reported, citing a Barclays' leisure analyst. The newspaper’s market report section cited research from the analyst said that Whitbread’s investor relations personnel, at an investor roadshow following the company’s results, had conceded that the demerger plans could lead to interest in Costa or Premier Inn.
Whitbread’s investor relations people said the company’s board would have to listen to “very credible” bids but still considers a demerger to be the optimum way to add value, according to the analyst.
Whitbread announced on 25 April that it plans to demerge Costa, a decision that was due to pressure from the activist shareholders Elliott Advisors and Sachem Head, The Times report said.
Whitbread’s market capitalisation stood at GBP 7.74bn at the close of trading in London on Thursday, 10 May.
Background:
Whitbread has retained the investment bank Morgan Stanley to advise on the Costa demerger, according to a report from this news service on 25 April. The report cited three people familiar with the situation for the information.