Pebblebrook Ups Offer for LaSalle
Hotel trust offers 13% premium over $4.8B sale agreement with Blackstone
Pebblebrook Hotel Trust has increased its purchase offer in an effort to block Blackstone Group‘s prospective $4.8 billion acquisition of LaSalle Hotel Properties. The bid is 13% higher than LaSalle’s sale agreement with Blackstone and was unanimously approved by Pebblebrook’s board of trustees.
“The Board of Pebblebrook remains convinced that a strategic combination with LaSalle represents a value-maximizing opportunity for the shareholders of both LaSalle and Pebblebrook,” says Jon Bortz, chairman, president and ceo of Pebblebrook Hotel Trust, who was featured as one of the cover subjects of Boutique Design’s March 2017 “Client Confidential” edition. “The performance of both LaSalle’s and Pebblebrook’s shares since LaSalle’s May 21 announcement of its sale agreement with Blackstone at $33.50 per share is evidence that the investment community and both LaSalle’s and Pebblebrook’s shareholders wholeheartedly agree with us. In fact, we’re not aware of any listed equity REIT M&A transactions since 2006 in which a target has agreed to a cash offer at a discount of greater than 1% compared to a competing share or share/cash offer.”
Bortz adds: “Our offer’s without a doubt a superior proposal to the sale agreement LaSalle executed with Blackstone ... In addition, the stock consideration offers LaSalle’s shareholders a more attractive opportunity from a tax perspective, and for those shareholders who want cash, the market has demonstrated that there’s substantial liquidity at prices significantly above the Blackstone offer.”