Takeover battle heats up as Pebblebrook offer tempts LaSalle
The takeover battle for LaSalle Hotel Properties took another turn today, as the luxury-hotel owner suggested it may reconsider a bid from Pebblebrook several months after agreeing to an acquisition from Blackstone.
LaSalle said that an unsolicited bid from Pebblebrook Hotel Trust could lead to a "superior proposal", throwing the firm’s accepted takeover offer from Blackstone Group into doubt.
"The board’s determination follows a careful and thorough review of the Pebblebrook proposal in consultation with outside financial and legal advisors," LaSalle said in a statement, adding that it is now allowed to "engage in discussions with Pebblebrook in accordance with the terms of the Blackstone merger agreement."
Last week influential shareholder advisory firms Glass Lewis & Co and ISS both recommended that LaSalle shareholders oppose a buyout deal by Blackstone.
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The move comes after the luxury-hotel owner agreed to a $3.7bn (£2.87bn) cash acquisition from Blackstone in June for $33.50 a share.
Last week, Pebblebrook raised the cash component of its $37.80-per-share offer to a maximum of 30 per cent of LaSalle’s outstanding shares from 20 per cent.
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Pebblebrook boss Jon E. Bortz said he was "pleased with the decision" made by LaSalle today.
"We continue to believe our proposal is superior to the Blackstone agreement and we look forward to engaging with LaSalle’s board to quickly reach an agreement to merge our two companies and allow shareholders to maximize immediate and long-term value," added Bortz.
Pebblebrook has said that it will vote against Blackstone's takeover bid, which requires approval from investors representing two-thirds of LaSalle’s shares.