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Fund Makes Unsolicited Bid for Red Lion

SPOKANE, WA-The $173-million offer from Columbia Pacific Opportunity Fund LP is described by Red Lion Hotels Corp. as a preliminary and non-binding indication of interest.

By Brian K. Miller | Updated on June 30, 2008

SPOKANE, WA-Red Lion Hotels Corp. said Monday it has received a preliminary offer to sell the company for $9.50 per share, or $173.2 million, a 35% premium to Friday’s closing share price of $7.01. In early afternoon trading Monday, shares of the company were trading at $8.15, up 15% on the day, and had traded as high as $8.66 earlier in the day. The company’s 52-week range is $6.45-$13.25.

The Red Lion chain includes 53 hotels located in nine states and one Canadian province, with 9,266 rooms and 441,640 sf of meeting space. The company also owns and operates an entertainment and event ticket distribution business.

Columbia Pacific Opportunity Fund currently owns 2.3 million shares of Red Lion stock, or 12.7% of the company. Red Lion described the CPOF offer as an “unsolicited, non-binding and conditional preliminary indication of interest” and said the company’s board of directors would evaluate the offer.

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