ATLANTA Lodgian has sent a letter to stockholders stating that it was having “substantive” talks with prospective buyers.
“If our negotiations with these parties produce an offer that is fair and fully financed, Lodgian will be sold,” said the letter from Chief Executive Robert Cole and Chairman Joseph Calabro.
However, in a recent interview, Cole said it was unlikely a deal would be reached before the companys annual meeting October 12, and noted that there is more than one potential buyer.
Lodgians largest shareholder, William Yung Sr., has aggressively expressed interest in buying the company, and has been highly critical of Lodgian management. The Lodgian letter claims Yung and his affiliates wanted access to financial information but refused to sign a confidentiality agreement.
“As shareholders, you should be concerned that Mr. Yung and his nominees, if elected, will act in their own self interest to acquire Lodgian at the lowest price and may seek to impede transactions with third parties. … We believe the Yung group will also be a disruptive force on the Lodgian board given its substantial conflicts of interest, the letter stated. (9/26/00)