Anbang now targets IHG

The company behind Holiday Inn is being evaluated by Chinese conglomerate Anbang in a swoop that could be worth GBP7 billion.

Insurance giant Anbang has reportedly held discussions over a potential takeover of Intercontinental Hotels Group.

The FTSE 100 firm was formed in 1998 from long-standing British firm Bass brewers and owns the Crowne Plaza, Candlewood Suites and boutique Indigo chains as well as Holiday Inn.

Talks are said to be in the early stages, according to the Sunday Times, after bankers were sent to China to discuss the deal with Anbang. But the insurance firm has not yet made any formal approach to Intercontinental.

The news comes days after IHG chief executive Richard Solomons sold stock worth more than GBP2.5million following a spike in the Intercontinental share price, which had soared 19 percent in a month.

Last week, Buckinghamshire-based Intercontinental shrugged off the turmoil in the travel industry caused by terrorist attacks overseas and posted strong interim figures, sending the shares u. Its operating profit rose two percent to GBP258 million for the six months to June 30, while sales fell eight percent to GBP629 million. It reported a two percent rise in the key industry metric of revenue available per room in the first half of the year.

Intercontinental performed less well in the US and Middle East, however, after the falling oil price caused bookings to dip when oil executives cut back on travel and the need for rooms for workers plummeted.