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InterContinental Hotels' shares rise amid takeover bid denial

InterContinental Hotels Group
Jeremy Piper | Bloomberg | Getty Images

Shares of InterContinental Hotels Group gained 2 percent on Monday amid speculation of a takeover by Chinese holding company Anbang Insurance Group.

However, Anbang denied reports of such a takeover bid.

A report on Sunday said that Anbang, which previously acquired Waldorf Astoria in New York, had its eyes on the hotelier and would make a $7 billion takeover. The London Sunday Times reported that Anbang has not made an official approach but has talked to bankers in an early stage consideration.

But investors still believe that there is still a chance that Anbang will make a deal, and the stock might moving up due to this speculation, said Morningstar analyst Dan Wasiolek in an email.

InterContinental is well-positioned in the hotel industry despite a tough environment, said the analyst.

"All competitors have seen some slowing recently from macroeconomic events (terror, geopolitical, corporate slowing). But RevPAR [revenue per available room] remains up low-single-digits in U.S. and in Europe (on a constant currency basis). We see Marriott, Hyatt, InterContinental, and Hilton as well-positioned in the industry given their leading loyalty program and brands," said Wasiolek.

InterContinental shares traded ended the day at $42.90.

InterContinental did not immediately respond to a CNBC request for comment.

IHG 12-month performance: