Eagle Hospitality Properties Trust, Inc. (NYSE:EHP) shares moved up $0.01, or 0.1%, to $10.35 after Corporex disclosed a 17% stake and made an offer to acquire the company for between $10.75 and $11.25 per share. The Schedule 13D/A filing noted that a draft merger agreement with a definitive price per share within the range described above would be delivered to your counsel immediately following successful conclusion of confirmatory due diligence. We first mentioned EHP back in January when the company's Board of Directors decided to explore a possible sale of the company. Since then, the company's shares have risen 10% with the buyout premium bringing that to as high as 19.6%.

But will the company accept the offer? Well, the offer is contingent upon a five day due diligence period, during which Corporex has the ability to withdraw its offer without penalty. Despite this, the offer is more likely than not to go through, given Corporex's existing 17% stake in the company, existing Board support, and their long-term interest in the company. The buyout premium comes in a bit lower than many were expecting, with some investors looking for $11.50 or higher; however, if the offer is accepted, Corporex would give the company a thirty day "go-shop" period to find other possible suitors. Overall, while this buyout was not as high as expected, it did net shareholders 10% to 20% in a month's time - that's nothing to complain about!

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