Photo Credit: A computerized check in at a Premier Inn in Cardiff, Wales. Premier Inn
Whitbread, owner of budget hotel chain Premier Inn, urged shareholders on Tuesday to vote down a board nominee from activist investor Corvex Management, the same day it reported a 9% drop in first-half profit.
The British company told shareholders it recommended rejecting the activist's resolution, saying the board unanimously opposed it.
"Corvex's agenda will significantly distract us from delivering our plan, and we believe these distractions will be to the detriment of shareholders," CEO Dominic Paul said in a presentation of the results.
Corvex, the New York-based hedge fund run by Keith Meister, is Whitbread's third-largest shareholder, with a stake of about 6.4%. It wants Corvex partner James Gemmel on the board. Shareholders are expected to vote November 9.
Paul said the nominee would "bring no additional or complementary skills or relevant experience" to the board. He said that despite a significant number of meetings over the p