Pittsburgh-based Interstate has been fending off a takeover by privately held Shaner Hotel Group since April 11, when the State College, PA-based firm offered $3 per share for 51% of the Interstate's class A common stock. The offer, already extended once, expired on Friday and Shaner officials say it will not be extended again. Shaner currently owns 6% of Interstate's class A stock, or 333,500 shares.

The Shaner proposal was rejected by Interstate's board under the advisement of Merrill Lynch and the company let it be known that it was open to other suitors. Shaner's proposal was made roughly three weeks before Interstate revealed its intention to acquire Washington, DC-based MeriStar. But Shaner publicly expressed confidence that he would prevail, criticizing the MeriStar deal and claiming that a Shaner-Interstate merger would be a more profitable deal for both companies.

If the Meristar merger is completed, the surviving company will keep the Interstate Hotels Corp. name and will operate more than 86,000 rooms in 412 hotels. The new entity would represent more than 30 franchise brands in North America and Europe as well as BridgeStreet Corporate Housing Worldwide and Doral Resorts & Conference Centers. Click here to read the original GlobeSt.com story.