Summary
- LaSalle Hotel Properties has scheduled a vote to approve the merger with Blackstone.
- Pebblebrook Hotel Trust really wants LaSalle Hotel Properties' assets and is trying to encourage shareholders to vote against the Blackstone deal.
- Betting on shareholders voting against the board is risky, and LaSalle Hotel Properties shareholders are being offered a premium to avoid that risk.
Owners of LaSalle Hotel Properties (NYSE:LHO) are in an interesting position. On September 6th, shareholders will be voting on whether or not to approve the merger with Blackstone (NYSE:BX) and receive an all-cash payout of $33.50.
LHO's board continues to recommend the proposal from BX, despite Pebblebrook Hotel Trust (NYSE:PEB) making a competing offer that many view as superior. Meanwhile, in a bid to discourage approval of the merger, PEB has reiterated that the deal will still be on the table after the vote.
This creates an interesting scenario where the share price for LHO is actually higher than the merger that is being voted on. What should LHO shareholders do?
