Bengaluru: The prospect of a break-up of Whitbread boosted its shares on Thursday despite a drop in sales for its Costa Coffee business in a tough British retail market. Reuters reported late on Wednesday that investor Sachem Head was pushing the FTSE 100 company to consider splitting the Costa Coffee chain from its hotels and restaurant businesses, according to two people familiar with the matter.
There was no immediate comment from Whitbread whose other brands include the Premier Inn budget hotel chain.
US hedge fund Sachem Head disclosed a 3.4 per cent stake in Whitbread last month. Whitbread shares traded 3.3 per cent higher at 0905 GMT.
In a trading statement, Whitbread blamed a tough British high street environment for the slip in Costa Coffee sales, while like-for-like sales across the group rose only marginally in the third quarter.
