Eagle Hospitality's board chairman, CEO of Corporex, proposes acquisition

By Lisa Kerner

Charlotte, N.C., Feb. 27 - Eagle Hospitality Properties Trust, Inc. investor and chairman of its board of directors William P. Butler is proposing that his company, Corporex Cos. Inc., acquire Eagle Hospitality for between $10.75 and $11.25 per share.

Butler, who owns 4,228,957 shares, or 17.6%, of Eagle Hospitality's outstanding stock, is the chairman and chief executive of Corporex, according to a schedule 13D filing with the Securities and Exchange Commission.

In a letter to Eagle Hospitality, Corporex said it has committed financing for the transaction from Goldman Sachs, its adviser on the proposal.

Butler's proposal is in response to Eagle Hospitality's announcement that it is seeking strategic alternatives, including a possible sale of the company.

Eagle Hospitality is a Covington, Ky., real estate investment trust.

Corporex is a real estate development company and is also based in Covington, Ky.

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