IHG rejects $10b takeover bid

A takeover bid of $10.1 billion for the InterContinental Hotels Group has been rebuffed by the international chain.

Last week an unnamed suitor approached the UK-based chain was rejected and IHG has picked up its stock repurchasing effort since the bid. Rumours hint that the bidder was a US based company, possibly Starwood Hotels & Resorts Worldwide.

CNN reported, “The acquisition of a hotel chain in the UK would be lucrative for a U.S. hotel operator because it would enable that company to establish a tax home base across the pond, allowing it to avoid paying taxes on international cash holdings.”

It seems the 4700-hotel chain is still listening to offers. IHG may have snubbed the first bid only because it was too low.