BETHESDA, MD—LaSalle Hotel Properties’ board of trustees has determined that the unsolicited proposal received from Pebblebrook Hotel Trust on July 20, 2018, to acquire the company does not constitute a “superior proposal” as defined in LaSalle’s merger agreement with affiliates of Blackstone Real Estate Partners VIII.
As previously announced on May 21, 2018, LaSalle entered into the Blackstone Merger Agreement, under which Blackstone will acquire all outstanding common shares of beneficial interest of LaSalle for $33.50 per share in an all-cash transaction valued at $4.8 billion.
The board remains committed to completing the Blackstone transaction, which is subject to customary closing conditions, including the approval of LaSalle’s shareholders. In that regard, the company filed its definitive proxy statement with the Securities and Exchange Commission (SEC), which includes the board’s unanimous recommendation that LaSalle shareholders vote for the proposal to approve the merger and the other transactions contemplated by the Blackstone Merger Agreement by voting the white proxy card.
For its part, Pebblebrook has filed definitive proxy materials with the SEC and began sending a letter to the shareholders of LaSalle Hotel Properties, along with the definitive proxy statement and a gold proxy card, in connection with LaSalle’s Special Meeting of Shareholders. Pebblebrook urges LaSalle shareholders to vote against LaSalle’s merger agreement with BRE Landmark L.P., an affiliate of The Blackstone Group L.P.
“The LaSalle Board’s pursuit of a transaction with Blackstone at a significant discount to our proposal is irrational and irresponsible, and we urge all LaSalle shareholders to join us in voting against it,” said Jon E. Bortz, chairman, president and CEO of Pebblebrook Hotel Trust. “Our value-maximizing proposal to combine with LaSalle continues to be a clearly superior alternative and we are committed to moving quickly to close our transaction should LaSalle shareholders reject Blackstone’s take-under.”
LaSalle’s Special Meeting of Shareholders is scheduled to take place on September 6, 2018, at the Sofitel Washington DC Lafayette Square in Washington, DC. All LaSalle shareholders of record as of the close of business on July 20, 2018, will be entitled to vote their shares either in person or by proxy at the shareholder meeting.