Gabelli investors to oppose Gaylord's proposed REIT conversion

Sept 13 Thu Sep 13, 2012 8:00pm IST

Sept 13 (Reuters) - Gaylord Entertainment Co's second-largest shareholder said it was opposed to the hotel operator's plans to convert itself into a real estate investment trust.

Gabelli Funds LLC, which has a 15.12 percent stake in Gaylord, said it is voting all of its shares against Gaylord's plan to sell its namesake brand and hotel management rights to Marriott International Inc.

Gaylord in May said its conversion to a REIT would reduce the company's tax burden and give its investors higher returns.

Gabelli recommended that Gaylord, which also owns and operates several attractions, spin-off the assets related to the Grand Ole Opry, the country-music mecca located in Nashville, Tennessee.

"As a public company, with dedicated and focused management, Opry should better flourish and be an enormous success for shareholders," Gabelli said in a letter to Gaylord.

In July, TRT Holdings - the company's largest shareholder at the time - had also said that it intends to vote against the REIT proposal, saying the deal is biased in favor of Marriott and appears to have been poorly negotiated.

Gaylord shares fell as much as 2 percent to $39.37 on the New York Stock Exchange on Thursday morning.

"India's Daughter"

Reuters Showcase

Microfinance

Microfinance

Funding the unfunded: India helps small business borrow to grow  Full Article 

Insurance Sector

Insurance Sector

UK healthcare firm Bupa sees strong growth in India  Full Article 

Sensex Rises

Sensex Rises

Sensex edges up; consumer and healthcare stocks rise  Full Article 

Market Eye

Market Eye

FTSE adds nine Indian firms as large-caps in Asia-Pacific ex-Japan index   Full Article 

Indian Ocean Diplomacy

Indian Ocean Diplomacy

PM Modi to ramp up help for Indian Ocean nations to counter China influence  Full Article 

ECB Bond-Buying

ECB Bond-Buying

ECB raises growth forecasts, to start printing money next week  Full Article 

China Economy

China Economy

China signals "new normal" with lower annual growth target  Full Article 

Pharma Sector

Pharma Sector

Panel recommends waiving late-stage trials for some drugs  Full Article 

E-commerce

E-commerce

China backs e-commerce expansion in win for Alibaba, JD.com  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage