ATLANTA, Dec. 15 /PRNewswire/ -- Lodgian, Inc. (NYSE: LOD) reported that
its Board of Directors met today to consider Edgecliff Holding's offer to
acquire all outstanding shares of the Company for $4.75, subject to certain
terms and conditions. Today's letter, from Chairman Joseph C. Calabro, is as
follows:
Dear Mr. Yung:
Our board of directors met today to consider Edgecliff Holdings'
December 10, 2000 proposal to acquire Lodgian for $4.75 per share, subject
to certain terms and conditions. Although we view the proposal as highly
conditional, Lodgian is prepared to move forward expeditiously to attempt
to negotiate a definitive agreement with Edgecliff on an exclusive basis
for a period of 45 days, subject to the following:
-- Edgecliff agrees not to make an offer to acquire Lodgian for less
than $4.75 per share;
-- The exclusivity arrangement must permit Lodgian to continue to
conduct asset sales; and
-- Lodgian will not reimburse any expenses of Edgecliff or otherwise
pay a termination or similar fee to Edgecliff in connection with
the exclusivity arrangement.
Our attorneys will be contacting your attorneys to work out the revisions
to your proposed form of Exclusivity and Expense Reimbursement Agreement
that are necessary to reflect the basis on which we are prepared to move
forward.
We thank you for your continued interest in Lodgian and look forward to
working with you in the coming weeks.
Forward-Looking Statements
Note: Statements in this press release that are not strictly historical
are forward-looking statements that are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. Forward-
looking statements involve known and unknown risks, which may cause the
Company's actual results in the future to differ materially from expected
results. These risks include, among others, competition within the lodging
and contract service industries; the relationship between supply and demand
for hotel rooms; the effects of economic conditions; issues associated with
the ongoing integration of the former Servico, Inc. and Impac Hotel Group,
LLC; the acquisition and renovation of existing hotels and the development of
new hotels; operating risks; the cyclical nature of the lodging industry;
risks associated with the dependence on franchisers of the Company's lodging
properties; and the availability of capital to finance planned growth, as
described in the Company's filings with the Securities and Exchange
Commission.
For more information on Lodgian toll-free via fax, dial 1-800-PRO-INFO
(1-800-776-4636), follow the voice menu prompts and enter the company ticker
LOD (or 563) or visit the Lodgian page on the FRB web site at www.frbinc.com
Visit Lodgian at www.lodgian.com
SOURCE Lodgian, Inc.
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