InterContinental Hotels says not mulling sale or merger

InterContinental Hotels responded to recent market speculation on Monday, saying it is not considering a potential sale or merger of the company.

On Friday, shares in the company surged following a report it was mulling the possibility of a sale or merger.

Bloomberg cited people familiar with the matter as saying that IHG was 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.