Seattle firm drops bid for Red Lion Hotels

Red Lion Hotels says major shareholder Columbia Pacific Opportunity Fund of Seattle has withdrawn its $9.50 per share acquisition offer, and no other potential buyer has made a definitive proposal.

The Spokane hotel company said Thursday afternoon that Columbia Pacific, which in June owned 12.7 percent of Red Lion, had dropped its bid to buy the rest. After entering confidentiality agreements, "Red Lion received preliminary indications of interest in acquiring the company from multiple parties, but did not receive a definitive proposal," a statement said.

The company said its board "believes that a significant factor in this outcome was the recent downturn in the U.S. and global economies and credit markets."

Red Lion shares traded at nearly $9 following the Seattle investment firm's offer, but this month they dropped sharply from $8 to Friday's close of $3.85.

Red Lion owns or operates about 50 hotels located in nine states and one Canadian province.

One of the principals for Columbia Pacific, Daniel Baty, is the founder, chairman and co-CEO of Emeritus, a Seattle-based operator of assisted-living communities. His family also owns several wine brands through Corus Estates & Vineyards.