Feb 27 Lodging REIT Ashford Hospitality Trust
Inc's offer to buy FelCor Lodging Trust Inc was
"woefully inadequate", activist hedge fund Land and Buildings
Investment Management LLC, which holds a stake in FelCor, said
Ashford offered to buy FelCor last week, in a deal valued at
about $1.27 billion, and launched a proxy battle for the control
of the company's board.
Land and Buildings, which owns 6.1 percent of FelCor's
shares, estimated the company's net asset value at $10.50 per
share, well above Ashford's offer price of $9.27 per share in
stock and warrants.
The hedge fund also said any offer by Ashford should consist
of at least $5 per share in cash, which is roughly the cash
balances at Ashford and its external manager Ashford Inc
FelCor's shares were up 1.8 percent at $7.21. Ashford's
shares, on which FBR raised its rating to "outperform" from
"market perform", jumped 4.7 percent to $6.71.
Up to Friday's close, Felcor's shares had fallen about 2
percent, since Feb. 17, the last trading day before Ashford made
its offer. Ashford's shares have dropped about 16 percent in
(Reporting by Ankit Ajmera in Bengaluru; Editing by Savio