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No Takers for Red Lion Hotels

SEATTLE-The Spokane, WA-based company says it entered into confidentiality agreements with several potential buyers but none resulted in a definitive proposal.

By Brian K. Miller | Updated on October 16, 2008

SEATTLE-Red Lion Hotels said Thursday it has concluded its strategic review of the company’s alternatives without having received an acquisition offer. The 53-hotel chain based in Spokane, WA attributed the outcome to “the recent downturn in the US and global economies and credit markets.”

In early July, Red Lion announced it had retained the investment-banking firm JMP Securities to assist the board of directors in evaluating its options for maximizing shareholder value. The move followed quickly on the heels of an unsolicited, non-binding offer by Columbia Pacific Opportunity Fund LP to acquire the company for $9.50 per share ($173 million).

At the time, Red Lion’s share price was in the $7 range, but bounced up above $8 on the news. The share price closed above $8 as recently as Sept. 30. On Thursday afternoon, it was trading under $4 per share.

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