Bethesda Doubletree. Photo by PebblebrookBETHESDA, MD–This is a shift. Up until now LaSalle Hotel Properties had steadfastly rejected Pebblebrook Hotel Trust's numerous offers, offering no hope that it might opt to be acquired by its rival hotel REIT. Instead it has remain fixed on Blackstone's offer to acquire it for $33.50 per share in an all-cash transaction valued at $4.8 billion.
That position changed with Pebblebrook's latest bid made on Aug. 21, 2018.
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LaSalle's Board of Trustees has determined that the unsolicited, non-binding proposal it received from Pebblebrook last week could reasonably be expected to lead to a “Superior Proposal” as defined in LaSalle's merger agreement with affiliates of Blackstone Real Estate Partners VIII.
Under the terms of the Pebblebrook proposal, Pebblebrook would acquire LaSalle for 0.92 common shares of Pebblebrook per common share of LaSalle, with the option for LaSalle shareholders to elect to receive a fixed amount of $37.80 per share in cash up to a maximum of 30% in aggregate of the consideration, subject to pro ration.
The Board's determination allows LaSalle to engage in discussions with Pebblebrook under the terms of the Blackstone merger agreement. At this time, the Board has not changed its recommendation in support of the Blackstone deal and is not making a recommendation on the Pebblebrook proposal.
LaSalle's special meeting of shareholders to vote on the Blackstone merger agreement remains scheduled for Sept. 6, 2018.
Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC are acting as financial advisors to LaSalle and Goodwin Procter LLP and DLA Piper LLP (US) are acting as legal counsel.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
