Eagle Forms Special Committee to Explore Strategic Alternatives

On January 29, Eagle's Board of Directors issued a short statement noting that it "has established a Special Committee of independent directors to explore strategic alternatives to enhance shareholder value, including a possible sale of the Company." The statement did not list which of the 6 directors Eagle classifies as independent were appointed to this crucial committee, whose decisions may profoundly affect the fortunes of Eagle investors. We call upon Eagle's Board to disclose the members of the Special Committee.

Eagle's Albatross has previously noted that 4 of Eagle's 6 "independent" directors have relationships with the company or Chairman William Butler that call their independence into question.

Featuring the free report: Eagle's Albatross: An Analysis of Eagle Hospitality Properties and its "Strategic" Alliances with Corporex and Commonwealth Hotels

Eagle Hospitality Properties [NYSE: EHP] – a small and underperforming hotel REIT – has “strategic alliance” agreements with its Chairman William P. Butler and the companies he controls, hotel operator Commonwealth Hotels and real estate company Corporex. EHP sees the strategic alliances, which strongly bind the REIT to Mr. Butler and his companies, as a key element of its strategy to succeed.
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Invester Alert #3

Corporex (the company whose founder and CEO is Eagle Chair William Butler) recently received approvals for a project in Northern Kentucky that may negatively impact Eagle. The project demonstrates another  potential downside to the "strategic alliance" that Eagle has with Mr. Butler and Corporex.
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