Barclay brothers sell InterContinental stake

LONDON (Reuters) - The billionaire Barclay brothers sold their 10.4 percent stake in InterContinental Hotel Group Plc (IHG.L) for 335 million pounds ($520 million) on Tuesday, sending shares in the world's biggest hotelier down sharply.

The owner of the Holiday Inn and Crowne Plaza brands as well as the InterContinental chain said the Barclay brothers' investment vehicle Ellermann Corp had sold its entire 29.9 million share stake.

The statement confirmed what traders had earlier told Reuters.

David and Frederick Barclay, owners of the Daily Telegraph and the London Ritz hotel, started buying InterContinental shares toward the end of 2006 and built their holding to around 10 percent by May 2007, to become by far the biggest shareholders.

Barclays Capital placed the 29.9 million shares the brothers held at 11.20 pounds each, the lower end of the broker's revised 11.20 to 11.30 range, traders said. InterContinental's house brokers are JP Morgan and Bank of America.

Barclays Capital declined to comment.

Shares in InterContinental fell 6.9 percent to 11.16 pounds by 1350 GMT in a slightly firmer London market.

(Reporting by Dominic Lau and David Jones; Editing by Jon Loades-Carter and David Holmes)