Premier Inn owner Whitbread has urged shareholders to reject activist hedge fund Corvex Management’s demand for a board seat, calling the push a threat to its turnaround plan. The FTSE 100 group stated that Corvex’s proposal would be a “complete waste” of resources and could destroy its positive momentum. Corvex, led by Keith Meister, demands a seat for partner James Gemmel and has been pushing for a strategic overhaul, including splitting the business and selling assets.
Whitbread CEO Dominic Paul criticized the fund as “very changeable” and “not credible,” noting 18 engagements over the past year. The company will hold a shareholder vote on November 9. Corvex holds a 6.4% stake worth £270mn.
Despite reporting stronger-than-expected profits, Whitbread shares are down 21% annually, underperforming the FTSE 100.
Source: Financial Times Companies · Summarized by HeadlinesBriefing