Fairmont Hotels & Resorts, parent of the Scottsdale Fairmont Princess and 87 other hotel properties, is warning shareholders to hold off responding to takeover giant Carl Icahn’s attempt to seize control of the company.
"Fairmont’s board has been actively engaged in a process of reviewing prudent options for enhancing value for Fairmont shareholders," the Toronto-based hotel company said in a statement issued Friday.
"The Board strongly urges Fairmont shareholders not to tender any shares to the bid pending the company’s recommendation."
Icahn, who is a minority shareholder in the company said Dec. 2 that he plans to snag 51 percent ownership of Fairmont, fix it and sell it.
He announced plans to boost his 9.3 percent stake to a majority holding by buying up to 29.6 million shares of Fairmont for $40 per share. The total tab would be $1.19 billion.
Icahn previously has said the luxury lodging company should sell itself to a larger competitor.
However, Icahn’s interest in the company has already catapulted the share price higher than his $40 per share bid.
Shares of Fairmont rose 4 cents to $40.83 Friday, 5.3 percent higher than the $38.79 price before Icahn’s Dec. 2 announcement.
Since the year began, the Toronto company’s stock has risen more than 20 percent.