Company Has Engaged with AHT Since Last Fall; Unable to Reach Mutually Beneficial Terms
Company Responds to Ashford’s Director Nominees
FelCor Shareholders Need Take No Action at This Time
February 21, 2017 11:25 / IRVING, Texas–FelCor Lodging Trust Incorporated (NYSE: FCH) confirmed today that its Board of Directors has received an unsolicited, non-binding and conditional proposal to combine its business with Ashford Hospitality Trust (NYSE: AHT). The proposal, made public by AHT today, follows several months in which FelCor has engaged with AHT in an effort to explore the possibility that a mutually beneficial transaction could be reached.
The FelCor Board established a transaction committee in December of 2016, comprised of independent directors, to facilitate consideration of AHT’s proposal and direct any related discussions, among other things. To date, however, the parties have not been able to reach mutually agreeable terms.
The FelCor Board will review AHT’s proposal of February 21, 2017, together with its financial and legal advisors and respond as appropriate. FelCor’s shareholders are advised to take no action at this time. The Company cautioned that there can be no assurance that any transaction will be reached or the terms on which any such agreement would be based.
FelCor also acknowledged receipt of AHT’s intent to nominate seven directors for nomination at the Company’s next annual meeting. The FelCor Board of Directors will review the nominees and make a recommendation to shareholders in due course.
BofA Merrill Lynch is acting as financial advisor to the Company and Sidley Austin LLP, Polsinelli LLP and Jones Day are providing legal advice to the Company.
