PITTSBURGH Interstate Hotels Corp. has received an unsolicited third-party proposal to purchase all of the shares of common stock of the company for $4.125 per share in cash. The conditional proposal is subject to the completion of due diligence over a 30-day period, the receipt of third-party consents and the negotiation of definitive agreements.
The company s Board of Directors has determined that pursuing this proposal is not in the best interest of the company s stockholders and has reaffirmed its recommendation that its stockholders approve the previously announced investment by an investor group lead by Lehman Brothers.
The stockholders agreed to invest $30 million in convertible preferred stock and notes of the company, arrange for a line of credit of at least $25 million and invest in a joint venture with the company. That strategy is expected to allow the company to acquire up to $300 million in hotel assets that will be managed by the company. (10/5/00)