Levi & Korsinsky is investigating the Board of Directors of Interstate Hotels & Resorts Inc. (“IHR” or the “Company”) (NYSE: IHR) for possible breaches of fiduciary duty.
New York, NY, January 28, 2010 — Levi & Korsinsky is investigating the Board of Directors of Interstate Hotels & Resorts Inc. (“IHR” or the “Company”) (NYSE: IHR) for possible breaches of fiduciary duty and other violations of state law in connection with their attempt to sell the Company to Hotel Acquisition Company, LLC, a 50/50 joint venture between subsidiaries of Thayer Hotel Investors V-A LP, a private equity fund sponsored by Thayer Lodging Group, and Shanghai Jin Jiang International Hotels (Group) Company Limited (“Hotel Acquisition”). Under the terms of the transaction, IHR shareholders will receive $2.25 in cash for each IHR share they own for a total transaction value of approximately $307 million.
The investigation concerns whether the IHR Board of Directors breached their fiduciary duties to IHR stockholders by failing to adequately shop the Company before entering into this transaction and whether Hotel Acquisition is underpaying for IHR shares, thus unlawfully harming IHR stockholders. The Company has a book value of more than $4.48 per share. Furthermore, on January 12, 2010, the Company filed with the SEC a preliminary proxy in connection with the announced transaction in which it disclosed that another party submitted a proposal to purchase the Company at a price of not less than $2.75 per share.
Also, on January 13, 2010, a 13D was filed by First Eagle Investment Management LLC )”First Eagle”) in which it disclosed that it purchased 2,000,000 shares of IHR stock after the merger was announced. First Eagle also stated that it is concerned that the process by which the Company arrived at signing the Merger Agreement was flawed. First Eagle also stated that, although it is still evaluating the proposed Merger Agreement, it is currently inclined to vote against the merger.
If you own common stock in IHR and wish to obtain additional information, please contact us at the number listed below or visit http://www.zlk.com/ihr1.html.
Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation.
CONTACT: Levi & Korsinsky, LLP, Joseph Levi, Esq., Eduard Korsinsky, Esq. 30 Broad Street – 15th Floor, New York, NY 10004 Tel: (212) 363-7500, Fax: (212) 363-7171, www.zlk.com
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Joseph Levi
Levi & Korsinsky, LLP
New york, NY
212-363-7500
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