UPDATE 1-Gaylord top shareholder opposes sale of hotel brand
July 17 |
July 17 (Reuters) - Gaylord Entertainment Co's largest shareholder said it was opposed to the hotel operator's plans to sell its namesake brand and hotel management rights to Marriott International Inc and convert itself into a real estate investment trust.
TRT Holdings, which owns a 21.8 percent stake in Gaylord, said the proposed deal was not in the best long-term interests of the company and its stockholders as the value and marketability of the properties would be significantly impaired by the agreement.
Gaylord in May said its conversion to REIT will reduce the company's tax burden and give its investors higher returns.
TRT, which intends to vote against the proposal, said the deal is biased in favor of Marriott and appears to have been poorly negotiated.
Gaylord shares closed at $37.78 on Tuesday on the New York Stock Exchange.
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