Friday , July 20 2018
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Time to revisit those Whitbread breakup models

Summary:
Sachem Head Capital Management, the New York activist investor founded by Bill Ackman protégé Scott Ferguson, has revealed a 3.4 per cent stake in Whitbread.FTSE 100 listed Whitbread, which owns Costa Coffee and Premier Inn as well as Brewers Fayre and Beefeater pubs, said in a regulatory filing that Sachem Head holds contracts for difference over 6.2m shares expiring July 2020. The disclosure follows recent speculation that an activist could push Whitbread to spin off Costa, exit the pubs business or borrow against its property portfolio.Credit Suisse analysts wrote in October:With rising shareholder activism, record private equity dry powder and with WTB trading on an historically cheap valuation we consider five options: 1) Release property value (64% of EV) – our updated Feb-18E

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Sachem Head Capital Management, the New York activist investor founded by Bill Ackman protégé...

Bryce Elder
Bryce is a sporadic Alphaville contributor and has been the FT’s UK equities reporter since 2008. Before that he wrote about UK equities at Morningstar. Before that he wrote about UK equities at The Times. Before that he wrote about UK equities at Bloomberg. Before that he wrote about UK equities at AFX News. Before that he did not write about UK equities.

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