Financial stocks held on moderate gains this afternoon, with the NYSE Financial Sector Index rising about 0.4% while financial companies in the S&P 500 Index were posting a nearly 0.5% increase. In company news, FelCor Lodging Trust (FCH) advanced Tuesday after the real estate investment trust today confirmed receiving a $1.28 billion, unsolicited buyout proposal from Ashford Hospitality Trust (AHT).
FelCor said it decide to go public with the offer following several months of discussions with Ashford, although those talks have been unable to strike a deal with “mutually agreeable terms.” It also said it will continue to review the Ashford bid, adding there can be no guarantee that a deal will be reached.Separately, Ashford has nominated a slate of seven independent directors for the FelCor board at the upcoming annual shareholders’ meeting. Ashford currently owns about 4.5% of FelCor’s outstanding stock.
FCH shares were up more than 10% at $7.99 apiece, previously climbing to a session high of $8.17 a share. AHT shares were down nearly 1% at $7.59 each, staying with 8 cents of today’s session low.