ATLANTA- Lodgian reported that it has sent a letter to its shareholders providing them with important information to consider, relating to a proposal to sell the company. As stated in an earlier announcement, the company has postponed its annual shareholder meeting until Friday, October 20, 2000. The meeting will be held at 9:30 a.m., EST.
The letter outlines the terms of the Whitehall Parallel Real Estate Limited Partnership XIII (Whitehall) offer to acquire all of the outstanding shares of the company for a cash purchase price of $4.50 per share, subject to certain adjustments. Lodgian has the right to terminate the transaction if adjustments would result in shareholders receiving less than $4.00 per share.
Furthermore, the letter highlights the fact that the exclusivity agreement with Whitehall permits Lodgian to consider unsolicited offers from a third party during a 60-day period.
Finally, the letter urges shareholders not to elect Mr. Yung and his nominees to Lodgians board. The letter states, “We believe that electing the Yung group will only put Mr. Yung in a position to interfere with the process relating to the Whitehall proposal and will not help us obtain the best possible price for Lodgian.We believe maximizing shareholder value can occur if the Yung group remains an unaffiliated third party and, if the Yung group wishes, becomes part of a competitive sale process. Therefore, we urge you to reject Mr. Yungs handpicked nominees!” (10/13/00)