Merger with rival may boost IHG share price: Marcato

Boston

ACTIVIST hedge fund Marcato Capital Management on Tuesday again urged InterContinental Hotels Group (IHG) to merge with a rival and said a tie-up could help the company's share price more than double.

The US$3.5 billion San Francisco-based hedge fund owns a 4 per cent stake in the hotel group, which also owns the Holiday Inn and Crowne Plaza brands. Marcato Capital Management publicly released its analysis because the hotel group's board has dismissed the fund's urging to combine with a larger operator.