Winston Hotels Terminates One Merger Deal, Accepts Better Offer
Posted April 3, 2007 10:48 a.m. EDT
Updated April 3, 2007 11:30 a.m. EDT
Raleigh, N.C. — Winston Hotels terminated one merger agreement in favor of a sweeter deal on Tuesday.
The Raleigh-based company has decided to accept a merger with Inland American Real Estate Trust, which is based in Atlanta, for $15 per share in cash. The firm’s board has already voted unanimously to accept the American Real Estate Trust offer.
Shares of preferred shock held by Winston Hotels shareholders can be converted to $25.44 in cash.
Earlier Tuesday morning, Winston Hotels terminated a merger agreement with Wilbur Acquisition Holding Co. The two firms had announced a deal on Feb. 21 that would have paid $14.10 per share for Winston Hotels stock.
Winston Hotel shares trade on the New York Stock Exchange under the symbol WXH. Shares opened trading Tuesday at $14.93.
As part of the merger, existing Winston Hotel management and employees will oversee day-to-day operation of the hotels it operates, the company said in a statement.
“The Board of Directors and the special committee of outside directors are pleased that the sale process has been structured in a manner that they believe provides the opportunity for the greatest benefit to our shareholders,” said Robert W. Winston III, chief executive officer of Winston Hotels.
The deal is expected to close in the third quarter.
Winston Hotels owns or has investments in more than 50 hotels spread across 18 states.