public wrangling

On Jan. 6, the company called Newcastle's tender offer of $1.20 per share "another in a long series of highly conditional, illusory proposals over the past several months." At the time, Whitehall's board contended that Newcastle's proxy solicitation was an attempt to acquire control without paying for it.

Cautionary pressure of Whitehall's bankruptcy soon followed, but Newcastle this week retorted with a new offer of $1.50 per share. Under the agreement, Newcastle would fund $150 million to buy all of the company's shares and to pay off the company's senior credit facility and refinance the bridge loan from Prentice Capital Management, LP and Holtzman Opportunity Fund, LP.

The proposition seemingly unmasked a much more compassionate Whitehall. Calling Newcastle's offer a "superior proposal," Whitehall is withdrawing from its support and recommendation of the Prentice transaction. Prentice in turn will have the opportunity to counter-offer within 10 business days. With much to consider, the company's stockholder meeting scheduled for today has been postponed until Feb. 6.