PEB Welcomes Glass Lewis Recommendation Against LaSalle' Deal With Blackstone

(RTTNews) - Pebblebrook Hotel Trust (PEB) commented on the recommendation from proxy advisory firm Glass Lewis against the proposed transaction between LaSalle Hotel Properties (LHO) and affiliates of The Blackstone Group L.P. (BX), which is scheduled for a vote on September 6, 2018.

"We are pleased with Glass Lewis' recommendation that LaSalle shareholders vote against the proposed transaction with Blackstone," said Jon Bortz, Chairman, President and Chief Executive Officer of Pebblebrook Hotel Trust.

"As the report noted, LaSalle's claim that the only alternative to the Blackstone transaction is to run a strategic review of opportunities rather than engage with Pebblebrook's offer is a 'heavy-handed scare tactic' that Glass Lewis has 'not previously encountered in other contested situations," said Jon Bortz, Chairman, President and Chief Executive Officer of Pebblebrook Hotel Trust.

"Glass Lewis also reiterates our view that the Blackstone agreement 'does not clearly represent the greatest possible value available to [LaSalle] shareholders,' and we are fully aligned with their recommendation to 'reject the Blackstone agreement and signal LaSalle's board that further exploration of the competing [Pebblebrook] offer is warranted'," said Jon Bortz.

"We continue to believe that our August 21, 2018 offer is clearly and materially superior to the Blackstone take-under proposal, and our view is strongly supported by Glass Lewis' recommendation," continued Bortz.

Bortz said that the LaSalle Board has run a flawed process and ultimately has failed to act in the best interests of their shareholders by moving forward with a proposal that represents an egregious transfer of shareholder value to Blackstone. Pebblebrook intends to vote 10.8 million shares, representing 9.8% of LaSalle's common shares, AGAINST the take-under proposals on the GOLD proxy card.