PALM BEACH, FL-Locally-based REIT Chatham Lodging Trust has rejected an offer from New York City-based BlueMountain Capital Management of $21.50 per share.
The company's board of trustees unanimously rejected the offer, the hotelier announced today, describing it as "inadequate, opportunistically timed and contrary to the best interests of Chatham and its shareholders.”
In early morning trading today, Chatham shares fell 17 cents $20.83 a share, according to the South Florida Business Journal.
"We thoroughly considered BlueMountain's proposal with our financial and legal advisors prior to rejecting it,” Chatham Chairman Miles Berger states. “The board firmly believes that executing on our proven strategic plan is the right path for substantially increasing shareholder value and that now is not the right time to pursue a sale of the company. In order to preserve the substantial shareholder value that has been and will be created, the board is taking measured steps to protect our shareholders from the inadequate and opportunistic takeover attempt by BlueMountain." See story in the South Florida Business Journal.
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