What to Do With Fairmont

Article Excerpt

FAIRMONT HOTELS & RESORTS INC. $50.06 (Toronto symbol FHR; SI Rating: Average) has accepted a $45.00 U.S. a share takeover offer from a private group that includes a U.S.-based hotel operator and a Saudi prince. The new offer tops a $40.00 U.S. a share bid for 51% of Fairmont from American billionaire Carl Icahn. However, Icahn has also agreed to sell his Fairmont shares to this group, and will let his takeover bid lapse. Canadian Pacific, our long-time safety-conscious favourite, split into five companies in 2001 (CP Railways, CP Ships, EnCana, Fording and Fairmont Hotels). We maintained a high opinion of all five parts. All five have performed well for us, including CP Ships, which was acquired at a premium by TUI AG late last year. Fairmont investors should tender their shares to the new offer, to get the full $45.00 U.S. without paying brokerage fees. fees…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.