Barclay brothers sell 10% stake in IHG

28 July 2010 by
Barclay brothers sell 10% stake in IHG

Shares in the InterContinental Hotels Group (IHG) fell yesterday by 7.4% following the news that the Barclay brothers had sold their 10% stake in the company for around £335m.

Ellerman Corporation, an investment company owned by David and Frederick Barclay, offloaded almost 30 million shares to more than 60 institutions for £11.20 apiece.

The Barclays, who own the Ritz hotel in London, had been IHG's biggest shareholders, with most of the shares having been acquired in 2007. When they increased their stake to 5% in early 2007, the IHG share price rose to a record high at the time of £13.42.

The Times reports today that the brothers may now be interested in using the money raised from the IHG deal to put towards the purchase of Grosvenor House hotel on Park Lane, London, which is currently being sold by the Royal Bank of Scotland for more than £500m.

Leslie McGibbon, head of corporate affairs for IHG, said that the fact that there had been a healthy demand for the Ellerman shares from 60 different institutions reflected the positive mood about IHG and the hotel sector in general.

InterContinental shares hit record high >>

Grosvenor House put on the market for £600m >>

Ritz conman jailed for five years >>

By Janet Harmer

E-mail your comments to Janet Harmer here.

If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to jobs

Looking for a new job? Find your next job here with jobs

[Newsletters For the latest hospitality news, sign up for our e-mail newsletters.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking