DALLAS—Citing a “lack of responsiveness and willing to engage with us seriously” on a possible merger, Ashford Hospitality Trust on Tuesday said it had submitted a non-binding proposal for a hostile takeover of FelCor Lodging Trust (FCH). The offer of $9.27 per share represents a 28% premium over the closing price of FelCor stock on Friday. A spokeswoman for FelCor tells GlobeSt.com the REIT is reviewing AHT's proposal and is urging shareholders to take no action at this time.
Additionally, AHT has nominated seven directors to the FelCor board. “The goal of these directors, if elected, will be to diligently work to maximize value for FelCor shareholders by evaluating all options, including engaging with Ashford in a more meaningful fashion regarding our proposal, in accordance with their fiduciary duties,” according to a letter from Benjamin Ansell, AHT's lead independent director, to the FelCor board.
In the letter to FelCor, Ansell writes that AHT is “confident that our proposal is economically and strategically compelling to your shareholders. We believe your shareholders are ready for and deserve a change.”
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
