Search

×

LaSalle spurns Pebblebrook again; prefers Blackstone’s cash

LaSalle Hotel Properties said on Monday it prefers Blackstone Group’s US$33.50 a share cash offer that values the hotel owner at US$4.8 billion over the latest bid from Pebblebrook Hotel Trust.

In a Monday statement, the LaSalle board said it deemed a June 11 offer from Pebblebrook “substantially similar” to one it rejected before accepting Blackstone’s bid. It said Pebblebrook’s offer “does not constitute, and could not reasonably be expected to lead to, a superior proposal.”

In a separate statement Monday, Pebblebrook said it increased its stake in LaSalle by about 9% in its bid to break up the Blackstone bid and that its offer “represents the greatest value-maximizing opportunity for the shareholders” of both companies.

“We are surprised that LaSalle’s board does not recognize our proposal to be superior. Our cash and shares offer provides LaSalle’s shareholders with approximately US$375 million of incremental value compared to the Blackstone agreement,” Pebblebrook said in a statement.

A Bloomberg story on Monday suggested because Pebblebrook’s offer remains mainly stock-based and remains volatile without a price-protection mechanism, Blackstone’s all-cash offer eliminates the risk.

The Blackstone deal now needs approval from two-thirds of LaSalle’s shareholders, and it remains to be seen if Pebblebrook raisea its offer again.

Bloomberg’s report also said Northwood Investors and Starwood Capital Group weighed offers for LaSalle, according to people familiar with the matter. Starwood Capital reportedly presented a written offer for the hotel company valuing it at US$32 a share but didn’t improve its price.

Comment