Costa plans in spotlight as Whitbread updates City

0 Costa, which Whitbread acquired in 1995 from its founders, now has more than 2,400 outlets Whitbread boss Alison Brittain will be quizzed over the firm’s plans for Costa Coffee this week when the group reports on first-quarter trading.

The coffee shop and hotel owner said earlier this year that it will split the Costa chain and list it as a separate entity, following pressure from activist investor Elliott.

But it has since emerged that Costa is being circled by a clutch of private equity firms – including Bain Capital, CVC and TPG – opening the door to a potential sale of the high street chain.

Graham Spooner at The Share Centre, said: “The sales and revenues figures will most likely be overshadowed by the media and investors demanding to know more of the possible demerger of the Costa coffee business where management have suggested a possible separate share listing.

“However, it has been rumoured that private equity vehicles have been interested and we’ll wait to see if management have been lured.”