Chatham Lodging Trust on Tuesday confirmed that it has received an unsolicited conditional proposal from BlueMountain Capital Management to acquire the company for US$21.50 per share (a 15% premium to Friday’s closing price) or roughly US$485 million.
BlueMountain, which owns a 5% stake in Chatham, also said that if Chatham Lodging could command a higher bid that it “would be supportive of such a process.”
BlueMountain also said on Monday that depending on Chatham’s response, it would reserve the right to pursue all possible alternatives to ensure that shareholders are given the opportunity to realize the value inherent in the proposal. It urged Chatham to respond no later than 5 p.m. on November 22, when the offer expires.
The Board of Trustees for the REIT with 76 hotels totaling 10,526 rooms stated that it will review the proposal in due course in and does not intend to comment further about BlueMountain’s proposal.