The law firms accuse Lodgian of accepting a price that is wellbelow its inherent value. They also question whether Lodgian'sboard of directors breached their fiduciary duties by not shoppingaround the company before unanimously approving the acquisitionagreement.
Lodgian announced Friday that it plans to merge with anaffiliate of Dallas-based Lone Star Funds in a transaction valuedat $270 million, including assumed debt. Lone Star, whichspecializes in distressed commercial real estate, is offering $2.50for each outstanding share of Lodgian stock.
Lodgian shares rose 39% to $2.47 on Friday prior to theannouncement and have traded at a range of $1.15 to $3.20 over thepast year. Last November, the company posted a netloss of $36 million for the third quarter.
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