Initial Acquisition Proposal; Receives Proposal
from Another Party
|SPRINGFIELD, Mo. - Dec. 7, 2004 -- John Q. Hammons Hotels, Inc. (AMEX:JQH)
announced today that its Special Committee reported to the Board of Directors
that it cannot support Barcelo Crestline's offer to acquire the Company's
Class A shares for $13 per share.
Commenting on the Committee's action, its Chairman, David Sullivan, said, "With the assistance of our financial and legal advisors, we have concluded that $13 per share is an unacceptable price. We also believe that there are a number of deficiencies in the agreement Barcelo has proposed entering into with Mr. Hammons. That being said, we are open to continuing negotiations with Barcelo Crestline to see if we can arrive at a transaction that is fair to our stockholders."
The Company announced that the Special Committee has received a proposal from another party that also would involve a change in control. However, this offer would not require Class A stockholders to sell their shares unless they so choose. Mr. Sullivan commented, "We have established a process to provide a reasonable opportunity for these, and any other, bona fide interested parties to communicate to us any transaction that there is a reason for believing could be consummated.
"Our Committee plans to meet as needed to respond to further submissions regarding these proposals and any other viable alternatives presented and to move the process along in a prompt manner. We believe the process we have established will help us ensure the only transaction that will occur with our Committee's recommendation will be one that is the result of a fair process and results in a fair price to the Class A stockholders. We also will modify or accelerate our process if we believe that these actions will result in a more favorable outcome for the Class A stockholders."
About John Q. Hammons Hotels, Inc.
John Q. Hammons Hotels, Inc.
Scott Tarwater, 417-873-3591
|Also See:||John Q. Hammons Will Vigorously Contest Shareholder Suit Trying to Block Proposed Sale to Barcelo Crestline Corp; Claims Suit Is Premature / October 2004|
|Barcelo Crestline Corporation Offers $64 million for John Q. Hammons Hotels, Inc.; Combined Companies Will Have about 190 Hotels under Management and Be Renamed Barcelo Hammons Hotels and Resorts, Inc. / October 2004|