Whitbread PLC (LSE:WTB) was top of the FTSE 100 leaderboard on Thursday, up almost 6% to 2,588p after an activist investor called for a strategic review at the Premier Inn owner.
In a stock market announcement, it was revealed that New York-based Corvex Management has built up a 5.5% stake.
Corvex issued a statement saying it believes Whitbread's the current market price "reflects not only a discount to the company’s fundamental value, but a discount to the value of the company’s fully-owned and operated UK hotel portfolio alone".
"In our view, the current share price appears to ascribe no value to several meaningful components of the Company's business, including its UK operated leasehold portfolio, its German hotel assets, and its development properties currently under construction and not yet trading."
Following the changes to business rates in the UK government's recent Budget, Corvex said it thinks the company "should undertake a strategic review to assess it capital allocation priorities and overall strategic direction", in particular as the company plans to invest £3.5 billion of investment over the next five years.
Whitbread has esimated higher business rates in the Budget will cost it £40-50 million in the next fiscal year.
Corvex said it intends to seek representation on the board and to "work constructively and collaboratively with Whitbread's directors and management team to conduct this review".
According to the Corvex website, the firm was founded in 2010 by Keith Meister, who previously worked for famed corporate raiser Carl Icahn's Icahn Enterprises for seven years, where he was also senior managing partner of Icahn Partners.
Meister serves on the board of directors for MGM Resorts International, BetMGM, and GeneDx Holdings and has previously served as a director on boards including Yum! Brands, Williams Companies, ADT Corporation, Ralcorp Holdings, and Motorola.
Corvex, the website says, "engages in fundamental investing with the ability to become active in situations to create asymmetric risk/reward opportunities", focusing on investing over the long-term in "high-quality businesses undergoing change in industries with positive secular tailwinds".