LaSalle Hotel Properties (NYSE: LHO) and Pebblebrook Hotel Trust (NYSE: PEB) have agreed to a $5.2 billion merger after former LaSalle suitor Blackstone Group bowed out of a potential bidding war Thursday.
It was quick, considering how long it took to get here. LaSalle deemed Pebblebrook’s most recent offer superior Wednesday, kicking off a four-day period in which Blackstone could put in a higher bid. Within hours, the private equity giant declined to rebid, pocketing a $112 million breakup fee and paving the way for a Pebblebrook-LaSalle merger.
Pebblebrook had made several bids for LaSalle (NYSE: LHO) since March. The final offer that won LaSalle was 0.92 shares of Pebblebrook stock per share of LaSalle stock, with up to 30 percent of the shares eligible for cash at $37.80 per share — which LaSalle claims is a 48 percent premium over its stock price before merger rumors first caused it to sway. Until this proposal, LaSalle had agreed to be taken private by Blackstone in May…Read the full story from the Washington Business Journal.