Fairmont Hotels & Resorts Inc. has formed a special committee to advise it on a partial takeover bid by U.S. billionaire investor Carl Icahn.
Members of the panel are Peter Godsoe, former CEO of Scotiabank; David O'Brien, former CEO of EnCana Corp.; Stephen Bachand, former CEO of Canadian Tire; and Robert Singer, former president of Abercrombie and Fitch Co.
They are charged not only with examining Icahn's bid, but with evaluating strategic options for maximizing shareholder value. But they have not been given a deadline, and Fairmont said they "may ultimately determine that its current business plan is the best means to build and deliver shareholder value."
Fairmont has also retained UBS Investment Bank, Avington International and Scotia Capital as financial advisors to help the process.
The high-end hotel chain also said it has tweaked its shareholder-rights plan.
Under the original plan, shareholder rights would trade separately on the 10th trading day following the first public announcement of an intended takeover bid, or at a time to be determined by the board.
The board has decided to defer that separation time.
Icahn scooped up 9.3 per cent of Fairmont through some of his companies in November, then announced this month his intention to pay up to $1.19 billion US to bring his stake in the chain up to 51 per cent.
He says the Toronto-based company, whose properties include Victoria's Fairmont Empress, should sell itself to a bigger hotelier to boost shareholder value.
