Hammons extends sale negotiations for third time

Exclusive negotiations were scheduled to end April 30 between hotel tycoon John Q. Hammons’ public company and the investor group, but Hammons Hotels announced April 29 that the exclusivity period will run through May 24.

The offer

JQH Acquisition is offering $24 per share of Hammons Hotels’ Class-A common stock (AMEX: JQH).

At press time there were 5.5 million shares outstanding, meaning that the offer is valued at more than $132.5 million.

“We believe that the additional time will help the parties work through a number of items

that remain to be negotiated,” said

David Sullivan, chairman of the committee that is reviewing the proposal, in a news release.

“There can be no assurance, however, even with this additional time, that a transaction will be consummated,” he added.

This is the second company Hammons Hotels has entered merger talks with since Oct. 18, when Virginia-based Barceló Crestline Corp. offered the company $13 per share.

Barceló later increased its buyout offer to $21 a share after Hammons Hotels stock increased by more than 30 percent in the two months following the initial offer.

This is the third exclusivity period between Hammons Hotels and JQH Acquisition since negotiations began Feb. 4.

About Hammons Hotels

Shares of John Q. Hammons Hotels Inc. closed May 4 at $21.40, down from the all-time high of $23.49 it reached Feb. 10.

John Q. Hammons Hotels owns 46 hotels in 20 states and manages 14 additional hotels in seven states.