Intercontinental Hotels Group (IHG) has turned down a takeover approach from a US hotel firm.
The deal was thought to be triggered by the US rival seeking significant tax savings by moving its tax domicile to Britain, much like the Pfizer's stalled approach for Astra Zeneca.
According to the Sunday Times, IHG has turned down the approach from an unnamed investment fund, thought to be Starwood Hotels.
The hotel chain's shares went up 10% at the beginning of the month, closing at £22.26 on Friday. This gives IHG a market value of £5.7b.
If the US firm was able to buy IHG it would allow it to use cash held offshore without having to pay tax.
IHG's directors currently rate the bid too low to consider.