Winston Opts for $850M Merger Agreement

RALEIGH, NC-Just about four weeks after receiving a second bid , Winston Hotels has made its decision–opting to enter into a definitive merger agreement with Inland American Real Estate Trust, Inc. However, before making the deal, the locally based hotel RET needed to end a previous agreement with Wilbur Acquisition Holding Co.

On Feb. 21, Winston agreed to merge with Wilbur Acquisition Holding, a limited liability company held by affiliates of Och-Ziff Real Estate and Norge Churchill, Inc. The deal put the total dollar amount at $430.1 million, or $14.10 per share. Two weeks later, Inland American upped the ante with its own $15-per-share bid, as GlobeSt.com previously reported.

After weighing both offers, Winston’s board of directors and an independent special committee of the board threw its support behind Oak Brook, IL-based Inland. As a result, Winston executives say the company has complied with the termination provisions of the Wilbur agreement, including the payment of termination fees and reimbursement of expenses. Winston executives expect, in turn, to be reimbursed by Inland, according to a release.