LaSalle Rejects Pebblebrook’s Latest Offer
LaSalle says that one reason it is rejecting Pebblebrook’s offer is because there are significant price risks and uncertainties for LaSalle shareholders.
BETHESDA, MD–LaSalle Hotel Properties has determined that the recent acquisition proposal it received from Pebblebrook Hotel Trust could not reasonably be expected to lead to, a “Superior Proposal” as defined in LaSalle’s definitive agreement with affiliates of Blackstone Real Estate Partners VIII.
Last week Pebblebrook offered to buy LaSalle — again — this time at a 13% premium over an offer that Blackstone had earlier made and that LaSalle had accepted.
LaSalle opted to stay with the Blackstone offer for several reasons, it said, including the following:
- The key terms in the latest offer were substantially similar to a prior proposal submitted by Pebblebrook in May, which was previously evaluated by the Board alongside the Blackstone proposal submitted on the same date.
- Pebblebrook’s proposal, which includes 80% stock consideration, continues to fail to address the significant price risks and uncertainties for LaSalle shareholders that had been previously communicated to Pebblebrook. Pebblebrook has repeatedly refused to agree to a pricing collar or similar type of pricing protection mechanism that would protect LaSalle shareholders against downside risks in the event of a decline in Pebblebrook’s share price between the signing and closing of a transaction.
- The Blackstone merger agreement represents immediate and certain cash value, is in the best interest of shareholders and is expected to close as early as August 2018.