UNITE HERE Asks If LaSalle Hotel Shareholders Are Shorting Pebblebrook Stock Ahead of Merger Vote
Aug. 27, 2018
NEW YORK--(BUSINESS WIRE)--Aug 27, 2018--UNITE HERE has asked the Securities and Exchange Commission to investigate whether any large shareholders of LaSalle Hotel Properties [NYSE: LHO] that may have shorted shares of Pebblebrook Hotel Trust [NYSE: PEB] should disclose such short sales in their 13D and 13G forms.
LaSalle’s shareholders will vote September 6 on a proposal to be acquired by Blackstone Group. Pebblebrook, which owns 9.8% of LaSalle stock, is making its own proposal to merge with LaSalle in a stock and cash deal, and is soliciting other LaSalle shareholders to vote no on the Blackstone proposal.
As of July 31, 2018, 8.8 million shares of Pebblebrook were shorted, representing 13% of its stock. If large LaSalle shareholders have shorted Pebblebrook’s shares, hoping to replace them in a successful Pebblebrook merger, such transactions could potentially create a financial incentive in the outcome of the Blackstone merger vote that may differ from that of other LaSalle shareholders.
“Large LaSalle shareholders should be transparent about financial transactions that could impact their vote on September 6,” said Courtney Alexander, Deputy Research Director for UNITE HERE. “We ask them to disclose publicly if they have shorted Pebblebrook’s stock ahead of the merger vote.”
The letter to the SEC can be viewed at https://unitehere.org/wp-content/uploads/UH-to-SEC-re-Lasalle-large-holders-082218.pdf.
UNITE HERE is a small shareholder of LaSalle. UNITE HERE affiliates have collective bargaining agreements at hotels owned by LaSalle and Pebblebrook that expire or have expired this year, and negotiations will take place with their hotel management companies. There could be labor disputes at these hotels. For additional information on LaSalle and Pebblebrook’s labor exposure, see http://unitehere.org/wp-content/uploads/PebblebookLasalle.pdf.
View source version on businesswire.com:https://www.businesswire.com/news/home/20180827005073/en/
CONTACT: UNITE HERE
Courtney Alexander, 631-834-4681
KEYWORD: UNITED STATES NORTH AMERICA NEW YORK
INDUSTRY KEYWORD: PROFESSIONAL SERVICES REIT BANKING FINANCE CONSTRUCTION & PROPERTY COMMERCIAL BUILDING & REAL ESTATE
SOURCE: UNITE HERE
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PUB: 08/27/2018 09:00 AM/DISC: 08/27/2018 09:01 AM