MeriStar Stockholders Approve Merger with Affiliate of The Blackstone Group
April 27 2006 - 11:15AM
PR Newswire (US)
BETHESDA, Md., April 27 /PRNewswire-FirstCall/ -- MeriStar
Hospitality Corporation (NYSE:MHX) announced that, at a special
meeting of stockholders held today, its stockholders voted to
approve the merger of MeriStar with and into Alcor Acquisition LLC,
an affiliate of The Blackstone Group, and the other transactions
contemplated by the Agreement and Plan of Merger, dated as of
February 20, 2006, by and among MeriStar, MeriStar Hospitality
Operating Partnership, L.P., Alcor Holdings LLC, Alcor Acquisition
Inc., Alcor Acquisition LLC and Alcor Acquisition L.P.
Approximately 98.8 percent of the shares of MeriStar common stock
present and voting at the special meeting approved the merger,
representing approximately 81.4 percent of the total number of
shares of MeriStar common stock outstanding and entitled to vote.
MeriStar expects to close the merger and the other transactions
contemplated by the merger agreement next week, pending the
satisfaction or waiver of the conditions set forth in the merger
agreement. Under the terms of the merger agreement, each
outstanding share of MeriStar common stock and each unit of limited
partnership interest in MeriStar Hospitality Operating Partnership,
L.P. will be converted into the right to receive $10.45 in cash,
without interest. About MeriStar Hospitality Corporation Bethesda,
Maryland-based MeriStar Hospitality Corporation owns 47 principally
upper-upscale, full-service hotels in major markets and resort
locations with 14,404 rooms in 19 states and the District of
Columbia. MeriStar owns hotels under such internationally known
brands as Hilton, Sheraton, Marriott, Ritz-Carlton, Westin,
Doubletree and Radisson. For more information about MeriStar, visit
the company's website: http://www.meristar.com/. About The
Blackstone Group The Blackstone Group, a global private investment
and advisory firm with offices in New York, Atlanta, Boston, Los
Angeles, London, Hamburg, Mumbai and Paris, was founded in 1985.
Blackstone's real estate group has raised approximately $10 billion
for real estate investing and has a long track record of investing
in office buildings, hotels and other commercial properties. In
addition to Real Estate, The Blackstone Group's core businesses
include Private Equity, Corporate Debt Investing, Marketable
Alternative Asset Management, Mergers and Acquisitions Advisory,
and Restructuring and Reorganization Advisory. Information relating
to The Blackstone Group can be accessed on the Internet at
http://www.blackstone.com/. Safe Harbor Statement This press
release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Forward-looking statements, which
are based on various assumptions and describe our future plans,
strategies and expectations, are generally identified by our use of
words such as "intend," "plan," "may," "should," "will," "project,"
"estimate," "anticipate," "believe," "expect," "continue,"
"potential," "opportunity," and similar expressions, whether in the
negative or affirmative. We cannot guarantee that we actually will
achieve these plans, intentions or expectations. All statements
regarding our expected financial position, business and financing
plans are forward-looking statements. Except for historical
information, matters discussed in this press release are subject to
known and unknown risks, uncertainties and other factors which may
cause our actual results, performance or achievements to be
materially different from future results, performance or
achievements expressed or implied by such forward-looking
statements. Factors which could have a material adverse effect on
our operations and future prospects include, but are not limited
to: economic conditions generally and the real estate market
specifically; supply and demand for hotel rooms in our current and
proposed market areas; other factors that may influence the travel
industry, including health, safety and economic factors;
competition; the level of proceeds from asset sales; cash flow
generally, including the availability of capital generally, cash
available for capital expenditures, and our ability to refinance
debt; the effects of threats of terrorism and increased security
precautions on travel patterns and demand for hotels; the
threatened or actual outbreak of hostilities and international
political instability; governmental actions, including new laws and
regulations and particularly changes to laws governing the taxation
of real estate investment trusts; weather conditions generally and
natural disasters; rising insurance premiums; rising interest
rates; and changes in U.S. generally accepted accounting
principles, policies and guidelines applicable to real estate
investment trusts. These risks and uncertainties should be
considered in evaluating any forward-looking statements contained
in this press release or incorporated by reference herein. All
forward-looking statements speak only as of the date of this press
release or, in the case of any document incorporated by reference,
the date of that document. All subsequent written and oral
forward-looking statements attributable to us or any person acting
on our behalf are qualified by the cautionary statements in this
section. We undertake no obligation to update or publicly release
any revisions to forward-looking statements to reflect events,
circumstances or changes in expectations after the date of this
press release. Contact: Kevin J. Welch MeriStar Hospitality (301)
581-5926 DATASOURCE: MeriStar Hospitality Corporation CONTACT:
Kevin J. Welch of MeriStar Hospitality, +1-301-581-5926 Web site:
http://www.meristar.com/ http://www.blackstone.com/
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