Gaylord rejects Omni owner's proposal
Nashville Business Journal
Gaylord Entertainment’s board of directors has rejected a proposal by TRT Holdings to increase its Gaylord share ownership and obtain board seats.
The proposal by TRT Holdings, owner of Omni Hotels, was to increase TRT’s ownership stake in Gaylord to up to 30 percent of the outstanding common stock and replace three members of Gaylord’s board with TRT designees.
The board unanimously determined the proposals made by TRT contain no economic or strategic advantage to the company, a release says.
The board says in the release the proposal is not in the best interest of all Gaylord shareholders because accepting it would give TRT effective control over the company’s long-term corporate strategy without a full and fair price being paid.
The proposal also raised conflict of interest issues, the board said, because TRT owns the Omni Hotels chain which competes with Gaylord for meeting business in three of its four principal markets.
“When the Board of Directors adopted the shareholder rights plan in August, its principal goal was to protect the interest of all shareholders,” says Colin Reed, Gaylord’s CEO and chairman in the release. “In this regard, the rights plan has had the intended effect.”
Gaylord and its board restated the company’s commitment to executing its long term business plan and maintaining its industry position.
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