U.S. hotel owner LaSalle Hotel Properties (LHO.N) on Monday sided with Blackstone Group LP’s (BX.N) all-cash offer to buy the company, as it looks to thwart Pebblebrook Hotel Trust’s (PEB.N) takeover bid.
Pebblebrook raised its cash-and-stock offer to $37.80 per share last week, topping Blackstone Group’s $3.7 billion proposal.
LaSalle also said Pebblebrook’s latest offer did not constitute a superior offer.
“Pebblebrook’s proposal, which includes 80 percent stock consideration, continues to fail to address the significant price risks and uncertainties for LaSalle shareholders…” LaSalle Hotel said in a statement.
The Blackstone deal, which represents “immediate and certain cash value”, is in the best interest of LaSalle Hotel shareholders and is expected to close as early as August, the company said.
LaSalle owns interests in hotels including Park Central San Francisco and Westin Michigan Avenue.