Four Seasons Board Okays $3.8 Billion Acquisition Bid

The board of directors for Four Seasons Hotels & Resorts has unanimously approved a $3.8 billion bid from Cascade Investment, a company owned in part by Microsoft co-founder Bill Gates, and Kingdom Hotels International to acquire control of the luxury chain.

Kingdom Hotels, which is owned by Prince Alwaleed bin Talal, a member of the Saudi royal family owns five Four Seasons hotels and has another three in development.

The transaction, which must still be approved by Four Season’s stockholders and regulatory authorities, will take the publicly traded hotel firm private.

Under terms of the acquisition, shareholders would receive $82 cash per share, a 28.4 percent premium over Four Season’s closing price on the New York Stock Exchange on Nov. 3, 2006, just days before the acquisition proposal was first announced.

Upon completion of the transaction, Triples, a holding company controlled by Sharp’s family, will retain a minority stake in the hotel chain. Sharp would continue to serve as chairman and CEO and the chain would also remain headquartered in Toronto.

Four Seasons said that if the transaction is completed, Sharp will be entitled to proceeds of approximately $289 million related to a long-term incentive agreement.