LaSalle chooses Blackstone’s $4.8B bid

LaSalle Hotel Properties rejects latest offer from Pebblebrook

New York /
Jun.June 18, 2018 02:12 PM

Blackstone CEO Jon Gray with Park Central NY at 870 7th Ave (Credit: Booking)

LaSalle Hotel Properties reiterated its rejection of Pebblebrook Hotel Trust, choosing instead to move forward with a possible acquisition by the Blackstone Group.

In a regulatory filing, LaSalle disclosed that the Blackstone deal values the company at $4.8 billion. The agreement, which both sides signed last May, is an all-cash transaction that sets the stock price at $33.50. Bloomberg first reported LaSalle’s decision.

LaSalle continued to refuse Pebblebrook’s advances, saying that the Maryland-based firm’s revised offer “does not constitute, and could not reasonably be expected to lead to, a ‘superior proposal.’” Pebblebrook previously offered a purchase price of $37.80 per share. LaSalle denied an earlier proposal, which set the merger price at $35.89, before agreeing to the Blackstone bid. In explaining its verdict, LaSalle pointed to the fact that Pebblebrook’s offer includes 80 percent in stock considerations. According to LaSalle, this opens their shareholders to “significant price risks” in case Pebblebrook’s stock price drops before the closing.

Pebblebrook, meanwhile, remains undettered. The company upped its stake in LaSalle to 10 million shares, which amounts to a nine percent share of the company. In a statement, Jon Bortz, the chairman and CEO of Pebblebrook, said that the acquisition shows their “determination to complete this combination.” He also claims that his company’s proposal has “broad support” from LaSalle shareholders.

The LaSalle-Blackstone deal requires approval from a two-thirds majority of LaSalle shareholders. Pebblebrook is still not completely out of the running. It has the option to provide another amended offer.


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
Real estate stocks push up this week as U.S.-China trade tensions ease
Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Signature Bank president and chief executive officer Joseph DePaolo (iStock)
“It’s a good time to make loans:” Multifamily lender smashes earnings record
“It’s a good time to make loans:” Multifamily lender smashes earnings record
Brian Kingston, managing partner & CEO, Brookfield's Real Estate Group and Brookfield Property Partners, in front of Two Blue Slip in Greenpoint (Brookfield Property Partners, Two Blue Slip, iStock)
Brookfield scores $330M refi at Greenpoint Landing
Brookfield scores $330M refi at Greenpoint Landing
Sam Chandan will head NYU Stern’s real estate programs  (samchandan.com, iStock)
NYU Schack Institute Dean Sam Chandan stepping down to join Stern
NYU Schack Institute Dean Sam Chandan stepping down to join Stern
1009-1011 South Congress Avenue and Turnbridge's Andrew Joblon (Music Lane ATX, LinkedIn)
Exclusive: Turnbridge Equities closes $500M Texas recap deal
Exclusive: Turnbridge Equities closes $500M Texas recap deal
Madison Realty Capital raises $2B for latest debt fund
Madison Realty Capital raises $2B for latest debt fund
Madison Realty Capital raises $2B for latest debt fund
Clockwise from left: 2250 59th Street in Brooklyn, 249-26 Northern Boulevard in Douglaston, Queens and 906 Wortman Avenue in Brooklyn (Google Maps)
Industrial buyers can’t stop, won’t stop
Industrial buyers can’t stop, won’t stop
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...