Has Interstate Found A White Knight?

NEW YORK— Hotel management firm Interstate Hotels Corp., which is fending off an unsolicited bid from Shaner Hotel Group, has received informal inquiries from several parties related to alternative deals, the company said in a filing. In late March and in early April, Interstate received unsolicited phone calls from several parties making “preliminary and informal inquiries” about Interstates interest in pursuing talks about alternative transactions, the company said in a 14D-9 filed with the Securities and Exchange Commission. Pittsburgh-based Interstate has also been in talks “from time to time” with a third party regarding a possible business combination, the filing said, and these talks are continuing. The company declined comment on these talks, but a white knight could save Interstate from Shaners unsolicited bid, Reuters reported. Shaners tender offer— which was extended and is now slated to expire on May— is contingent on Shaner receiving a minimum of the shares sought, removing Interstates shareholders rights plan and other conditions. SOURCE: Reuters