BlueMountain Says Disappointed By Chatham's Rejection Of Its $21.50/shr Offer

(RTTNews) - BlueMountain Capital Managemen LLC, which manages through affiliated funds, approximately 4.8% of the common stock of Chatham Lodging Trust (CLDT), said Thursday that it is disappointed by Chatham's rejection of BlueMountain's $21.50 per share buyout offer and the other actions announced on Wednesday by Chatham's Board of Trustees.

BlueMountain also said that it remains committed to the belief that a sale transaction or business combination is in the best interests of the Company, its shareholders, employees and customers and is considering its options in response to the rejection of its offer.

On Wednesday, Chatham Lodging Trust had said that the Board of Trustees of the company unanimously rejected Bluemountain's $21.50 per share takeover offer, as the proposal was inadequate, opportunistically timed and contrary to the best interests of Chatham and its shareholders.

In addition, Chatham Lodging Trust had said that its board adopted a classified board structure pursuant to which the Board of Trustees is designated into three classes with three-year terms. In order to emphasize that the classified board was solely intended to protect value and was not intended to be a permanent feature of the Company's corporate governance, the Company has committed to take action within two years to declassify the Board.

The company also adopted certain amendments to its bylaws, including to require disclosure of certain additional information with respect to shareholder trustee nominations and shareholder proposals, add a qualification for potential Board nominees that they not be subject to certain third-party compensation arrangements, and to address other general corporate housekeeping items.

On November 4, 2013, Chatham Lodging Trust had confirmed that it received an unsolicited conditional proposal from BlueMountain Capital Management to acquire the Company for $21.50 per share, subject to due diligence, financing, negotiation of satisfactory agreements and other conditions. The Chatham Board of Trustees would review the proposal in due course in consultation with its financial and legal advisors.