Nelson Peltz has been buying agressively in recent times, and that run has continued today as the maven took a 4.27% stake in Intercontinental Hotels Group Plc (LON:IHG). Trian Fund Management, Peltz’ investment vehicle. disclosed the stake today to the appreciation of the market. Intercontinental’s share price rose more than 6% in trading today on news of the stake.
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This is not the first aggressive European move Peltz has made this month. The investor bought a 7.3% stake in Ingersoll-Rand plc (NYSE:IR) earlier this month. The Ireland based company offers Climate solutions residential and industrially. Peltz saw that the firm was under performing compared to others in the market and decided to make his move.
Intercontinental Hotel Group, which most famously owns the Holiday Inn chain, is another European company which was under performing compared to its peers. Shareholders are now hoping that Peltz will be able to involve himself in the firm’s strategy in order to maximize value for shareholders.
Their hope is not misplaced. Peltz is famed for turning companies around when he sees his opportunity to invest. Two of the most famous examples of his strategic investments are the H.J. Heinz Company (NYSE:HNZ) in 2006 and The Wendy’s Company (NASDAQ:WEN) in 2008. Both of those firms benefitted from Peltz’ presence and both retain him on their boards to this day.
Peltz is a great activist investor. He’s shown countless times that he knows how to turn companies around and return value to their investors. This month, however, he’s jumped into two companies in two completely separate industries. The under performance of the firms suggests that he isn’t simply long but activist in both.
It is ambitious to think that one can turn two huge companies around at the same time particularly when one is in industry while the other is involved in hotel chains. The fact that both countries are in Europe is probably a coincidence seeing the global operations of each.
If anyone can do it however it is Nelson Peltz. The 68 year old is proven in his craft and ambition is nothing new to him. These companies as their shareholders will attest were happy to have him by their sides. Activisism is an art more than it is is a science and Nelson Peltz is an artist.
Traders in London see Peltz as a boon to Intercontinental as he surely will be. the company’s future is looking bright with him involved.