WILMINGTON, DE Sunburst Hospitality Corp. was sued by a shareholder claiming that the $380 million inside buyout plan undervalues shares.
The Maryland-based Sunburst said last week that a management-led group would pay $7.375 for each outstanding share and assume $263 million in debt. In one of five lawsuits filed in Delaware Chancery Court last week, Sunburst shareholder J.B. McBride contends the per-share price is too low, considering the companys growth potential.
The buyout group includes Chairman Stewart Bainum Jr., and members of Bainums family, who control about 46% of company stock, the suit says. (9/26/00)