for Approximately $3.4 billion
|Dallas (November 9, 2005) – La Quinta Corporation and La Quinta Properties,
Inc. (NYSE: LQI) today announced that they have entered into a definitive
merger agreement to be acquired by an affiliate of The Blackstone Group
for $11.25 per paired share in cash. The price represents a premium of
37% over yesterday’s closing price of $8.22. The total value of the transaction,
including debt, is approximately $3.4 billion.
The boards of directors of La Quinta unanimously approved the merger agreement and recommended approval by their stockholders. La Quinta Corporation stockholders will be asked to vote on the proposed transaction at a special meeting that will be held on a date to be announced. The completion of the merger agreement is subject to various customary closing conditions. The closing of the merger agreement is expected to occur during the first quarter of 2006. Completion of the merger agreement is not subject to the receipt of financing by Blackstone.
Francis W. (“Butch”) Cash, chairman and chief executive officer for La Quinta, said, “We are pleased to have signed a merger agreement with one of the world’s preeminent owners of hotels and resorts. Blackstone was attracted by our strong brands, high quality hotels, excellent management team and operating culture that is focused on delivering superior guest satisfaction. We believe this transaction is beneficial to our stockholders and will build on the accomplishments we have achieved over the last five years.”
Jonathan D. Gray, senior managing director of The Blackstone Group, said, “We are excited to be acquiring La Quinta and look forward to working with its employees and franchise owners to continue the company’s success. We feel particularly fortunate to inherit such a great organization and vibrant franchisee base.”
Morgan Stanley acted as financial advisor to La Quinta. Bear Stearns, Deutsche Bank and Merrill Lynch acted as financial advisors to Blackstone. Acquisition financing is being provided by Bank of America, Bear Stearns and Merrill Lynch. Goodwin Procter LLP acted as legal advisor to La Quinta. Simpson Thacher & Bartlett LLP acted as legal advisor to Blackstone.
About La Quinta
About The Blackstone Group
Certain matters discussed in this press release may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Words such as “believes,” “anticipates,” “expects,” “intends,” “estimates,” “projects” and other similar expressions, which are predictions of or indicate future events and trends, typically identify forward-looking statements. Our forward-looking statements are subject to a number of risks and uncertainties, which could cause actual results or the timing of events to differ materially from those described in the forward-looking statements.
|Also See:||Wyndham International, Inc. Announces Agreement to Be Acquired by the Blackstone Group for $1.15 Per Share or Approximately $3.24 Billion / June 2005|
|Blackstone Real Estate Advisors Combines 14 Wyndham Properties with Seven Other Owned Hotels to Form the LXR Luxury Resorts Brand / August 2005|