Red Lion Hotels said one of its shareholders, Columbia Pacific Opportunity Fund, has withdrawn its offer to buy the rest of the company.
On June 27, Columbia Pacific submitted an unsolicited, preliminary offer to buy Red Lion for $9.50 per share (about $173 million). Red Lion closed at $7.05 per share when the preliminary offer was made; the stock is now trading at under $4.
Columbia Pacific currently owns 12.7% of the hotel company.
Red Lion said "multiple parties" expressed preliminary interest in acquiring the company, but that it did not receive a definitive proposal from any party, including Columbia Pacific.
“A significant factor in this outcome was the recent downturn in the U.S. and global economies and credit markets,” Red Lion said.