Real estate investment trust Ashford Hospitality Trust has made a public bid to acquire FelCor Lodging Trust for $1.27 billion. Ashford, which owns a 4.5 percent stake (137.5 million shares) in FelCor, ignited a proxy battle for control of the FelCor board following its announcement that it nominated seven independent directors to lead the board. The company’s shares rose 13 percent to $8.16 earlier this week despite trading below the offer price of $9.27 per share. Ashford shares fell slightly to $7.63.
If combined, the companies would have 159 properties representing 36,657 keys. Both companies invest in upper-upscale hotels and resorts.
FelCor announced it would review the offer from Ashford, claiming the two companies had previously been in talks and formed a transaction committee.
