SPRINGFIELD, Mo.
-- Barcelo Crestlines move to acquire John Q. Hammons Hotels has
hit a snag as a committee formed by John Q. Hammons board of
directors to review the offer reported that it cannot support
Barcelos proposal to acquire its Class A shares at $13 per share.
With the assistance
of our financial and legal advisors, we have concluded that $13 per
share is an unacceptable price, said David Sullivan, chairman of
John Q. Hammons Hotels. 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.
Meanwhile, John Q.
Hammons Hotels said it 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, Sullivan said.
In October, Barcelo Crestline Corp., the parent of Crestline
Hotels & Resorts, announced its intention to acquire John Q.
Hammons Hotels, an independent developer, owner and manager of 60
hotels and resorts for $64 million in cash. Plans called for
renaming the combined company Barcelo Hammons Hotels and Resorts.
Its portfolio would encompass 190 properties in the
U.S.
John Q. Hammons,
founder and CEO of John Q. Hammond Hotels, voiced support for the
proposed acquisition, calling the Barcelo Crestline Corp. a fine
organization with excellent management and knowledgeable,
international ownership.
To contact
the reporter who wrote this article, send e-mail to Michael
Milligan at [email protected].