According to the Sunday Times, City sources believe Whitbread’s chief executive, Alison Brittain, is “not philosophically opposed” to hiving off Costa from Whitbread and believes it is a case of “when, not if”. Trouble’s brewing all over Whitbread group Read morePressure for a break-up has been brought to bear by US hedge funds, which have increased their shareholding in recent months. While it has made no formal comment, Elliott’s position is understood to be that Costa should be a separate entity from the Whitbread group, as Costa and Premier Inn are largely run as separate businesses with minimal overlap in the management teams. Another activist investor, Sachem Head, which has bought up a 3.4% holding in Whitbread, is also seeking to separate the company’s two major brands. News of Elliott’s growing shareholding helped push Whitbread’s shares nearly 8% higher last week, suggesting that other investors believe a split would be desirable.

Source: The Guardian April 22, 2018 16:18 UTC