InterContinental Hotels tops FTSE 100 on reports it's mulling a deal

InterContinental Hotels flew to the top of the FTSE 100 on Friday afternoon following a report the company was mulling the possibility of a sale or merger.

Bloomberg cited people familiar with the matter as saying that IHG is in discussions with financial advisers about whether to sell itself or merge with a competitor as the sector consolidates.

Media reports in July suggested the Holiday Inn owner was in talks with Starwood Hotels & Resorts over a possible merger but these were subsequently denied.

In October, IHG posted a rise in third-quarter revenue per available room and expressed confidence in the outlook for the business.

At 1420 GMT, IHG shares were up 4.8% at 2,736p.