- Jimmy Dean parent Tyson Foods has held talks to buy Foster Farms for $2 billion
- Justice Department reportedly close to approving CVS-Aetna, Cigna-Express Scripts deals
- Fred's shares surge more than 80 percent after announcing $165 million deal to sell some pharmacy files to Walgreens
- Salesforce Founder Marc Benioff makes deal to buy Time Magazine for $190 million
- DOJ clears Cigna's acquisition of Express Scripts
Private-equity firm Blackstone said on Monday it would buy U.S. hotel owner LaSalle Hotel Properties for $3.7 billion, topping a rival bid from Pebblebrook Hotel Trust in April for $3.5 billion.
The deal values LaSalle at $33.50 per share compared with Pebblebrook’s offer of $31.75 per share and represents a premium of 5 percent to LaSalle’s closing price on Friday.
Pebblebrook raised its offer in April after LaSalle rejected it a previous bid, saying it undervalued the owner of high-end locations including ‘W’ Los Angeles.
LaSalle Chairman Stuart Scott said it was in touch with 20 potential buyers and signed confidentiality agreements with 10 of them before deciding on Blackstone’s offer.
Blackstone usually buys hotels and other real estate holdings at a discount, restructures them and sells for a profit.
The private-equity firm exited Hilton Worldwide on Friday after nearly 11 years by selling about 5.8 percent stake or 15.8 million shares in the hotel chain operator for about $1.32 billion.
Shares of LaSalle rose 5.2 percent at $33.55 in premarket trading, while shares of Blackstone were marginally up.
Citigroup Global Markets Inc and Goldman Sachs were the financial advisers, while Goodwin Procter and DLA Piper were the legal advisers to LaSalle.
Morgan Stanley and J.P. Morgan were the financial advisers to Blackstone. Simpson Thacher & Bartlett was acting as legal adviser to Blackstone.