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Corvex Management LP on Thursday said it has taken a 6.1% stake in Whitbread PLC, saying the hospitality firm trades at a discount not only to its ‘fundamental value’ but at a discount to the value of its UK freehold hotel portfolio alone. Corvex urged Whitbread to commission a third-party strategic review of its capital allocation priorities. Corvex is an alternative asset and investment management firm based in New York. It was founded in 2010 by Chief Investment Officer Keith Meister and its website says Covex engages in fundamental investing ‘with the ability to become active in situations to create asymmetric risk/reward opportunities’. Whitbread is a Bedfordshire-based hotel and restaurant owner, whose lead business is the Premier Inn chain in the UK and Germany. ‘In our view, the current share price appears to ascribe no value to several meaningful components of the company’s business,’ Corvex said, ‘including its UK operated leasehold portfolio, its German hotel assets, and its development properties currently under construction and not yet trading.’ Corvex said it had not ‘predetermined any particular outcome’ to the strategic review. However, it said, ‘we believe the board of directors should review the company’s current five-year capital plan, which contemplates approximately £3.5 billion of investment - an amount approaching the company’s current market capitalisation.’ Whitbread shares were up 6.3% to 2,600.00 pence early Thursday in London. The stock remains down 11% over the past 12 months. The FTSE 100 index constituent has a £4.38 billion market cap. Whitbread made no immediate response to Corvex. In a stock exchange filing on Thursday morning, it reported that Corvex owned 9.4 million shares, a 5.5% stake, as of Monday, up from none reported before. In its own announcement on Thursday, Corvex said it now owns 10.2 million shares, a 6.1% stake. Corvex said it wants to work ‘constructively and collaboratively’ with the Whitbread board and management team. ‘Ultimately, we believe the company must evaluate all available strategic options with the objective of maximising value for all shareholders,’ it said. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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