LaSalle shareholders sign off on acquisition by Pebblebrook

Pebblebrook Hotel Trust’s $5.2 billion acquisition of fellow Bethesda hospitality REIT LaSalle Hotel Properties has received the approval of shareholders of both companies.

Pebblebrook’s holders signed off Tuesday on the issuance of stock to LaSalle shareholders as part of a deal forged in September following Pebblebrook’s long and complicated pursuit of the company. That included Pebblebrook outdueling private equity giant The Blackstone Group LP (NYSE: BX), which had previously entered a deal to acquire LaSalle.

The final offer that won LaSalle (NYSE: LHO) was 0.92 shares of Pebblebrook (NYSE: PEB) 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.

The cash component of the deal is fixed at approximately $1.3 billion, according to Securities and Exchange Commission filings. Roughly 77 percent of LaSalle’s…

Read the full story from the Washington Business Journal.