Wednesday, May 26, 2010

IHG CFO: Buyback Talk Premature

LONDON (Dow Jones)--InterContinental Hotels Group PLC's (IHG) chief financial officer said Wednesday it would be premature to consider returning cash to shareholders, despite the Holiday Inn-owner's promising start to the year, as it isn't yet clear whether the recovery is sustainable.


In an interview with Dow Jones Newswires, Richard Solomons said it was too early to talk about a resumption of the company's share buyback program.

"I think it's a bit premature," he said. "In this environment we need to keep investing and keeping a lid on debt is important."

Citigroup analyst James Ainley raised the prospect of IHG renewing its share buyback program in a recent note to investors. He estimates that IHG will have surplus cash of over $100 million this year and $200 million in 2011.

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