Whitbread climbs on market talk of Dubai interest

Mon Apr 14, 2008 3:40pm BST

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LONDON (Reuters) - Shares in Whitbread (WTB.L), the owner of the biggest hotel and coffee-shop chains, added over 2 percent in a downbeat market on Monday as traders cited market talk of a bid from a Dubai investor.

Whitbread declined to comment.

Dubai International Capital, also the owner of budget hotel chain Travelodge, was named as a possible interested party by one London trader.

In late March, Premier Inn owner Whitbread said talks about buying budget hotel rival Travelodge had ended, with sources close to the deal saying negotiations broke down over price and worries the deal would be scuppered by regulators.

At 3:30 p.m., Whitbread shares gained 2.2 percent at 1,143 pence, while the FTSE 100 .FTSE was 0.9 percent lower.

(Additional reporting by Marc Jones)

(Reporting by Michael Taylor)

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