RLJ Lodging discloses prior receipt of downwardly-revised $24/share offer
In a regulatory filing related to RLJ Lodging Trust's (RLJ) previously announced merger agreement under which FelCor Lodging Trust (FCH) will merge with RLJ in an all-stock transaction, RLJ disclosed that on June 23, the company received a third unsolicited, nonbinding proposal from "Party Y," this time to acquire all of the capital stock of RLJ at a price of $25.50 per RLJ Common Share in an all-cash transaction. On June 26 and again on June 27, the RLJ Board met to discuss the third proposal received from Party Y. In the course of these meetings, the RLJ Board thoroughly reviewed and discussed the proposal, with input from its legal and financial advisors. After due deliberation, on June 27, the RLJ Board determined that the proposal could reasonably be expected to lead to a "Superior Proposal" and authorized management to commence discussions and negotiations with Party Y regarding the potential transaction described in the June 23 letter. On June 29, RLJ and Party Y entered into a confidentiality agreement, and thereafter Party Y commenced business and legal diligence. On July 6, Party Y submitted a revised nonbinding offer to acquire all of the capital stock of RLJ at a price of $24.00 per RLJ common share, the filing states.