TSX Defers Consideration Of InnVest Unitholder Rights Plan

    TORONTO, Oct. 28 /CNW/ - InnVest Real Estate Investment Trust ("InnVest"
or the "Trust") (TSX: INN.UN) announced today that in connection with its
recently announced Unitholder Rights Plan (the "Plan"), the Toronto Stock
Exchange ("TSX") has deferred its consideration of adoption of the Plan. The
TSX has advised InnVest that its decision to defer consideration of the Plan
is based on the fact that the Plan will expire within 180 days of its
effective date. In the interim, the Plan remains in full effect in accordance
with its terms.
    The Plan is intended to ensure that Unitholders receive fair treatment in
the event of an unsolicited attempt to gain control of InnVest and, in such
event, to ensure Unitholders receive full value and that the Board of Trustees
has time to consider alternatives to maximize Unitholder value. The Board
believes that the implementation of the Plan is particularly important at the
present time given the volatility in the markets and the Board's view that
InnVest's Units are currently significantly undervalued.
    The rights will only become exercisable upon the occurrence of certain
triggering events, including the acquisition by a person or group of persons
of 15% or more of the outstanding Units in a transaction not approved by the
Board. The Board of Trustees considered many factors in its determination to
implement the Plan and the appropriate threshold for triggering the Plan. In
particular, the Board considered the recent significant drop in InnVest's unit
price, the high trading volumes in InnVest's units, the continued volatility
and uncertainty in the markets and the historically low attendance rates at
InnVest's annual general meetings.
    The Rights will not be triggered by purchases of Units made pursuant to a
"Permitted Bid" under the Plan, being a bid made to all InnVest Unitholders on
identical terms and which remains open for acceptance for not less than 60
days. The Plan is not intended to deter a bona fide take-over bid for InnVest
under a full and fair offer. It does not affect the duty of the Board to give
proper consideration to any offer that might be made, and to act in the best
interests of Unitholders.
    The text of the Plan is available at www.sedar.com and


    InnVest REIT holds Canada's largest hotel portfolio together with an
interest in Choice Hotels Canada Inc. the largest franchisor of hotels in
Canada. The hotel portfolio currently comprises 148 hotel properties, with
over 19,250 guest rooms, operated under internationally recognized franchise
brands such as Comfort Inn(R), Holiday Inn(R) Quality Suites/Inn(R),
Radisson(R), Delta(R), Travelodge(R), Hilton Hotel(R), Staybridge Suites(R),
Fairmont Hotels(R), Sheraton Suites(R) and Best Western(R). InnVest's trust
units and outstanding convertible debentures trade on the Toronto Stock
Exchange under the symbols INN.UN, INN.DB.A, INN.DB.B and INN.DB.C,

    %SEDAR: 00018005E

For further information:

For further information: Kenneth D. Gibson, President and Chief
Executive Officer, Tamara L. Lawson, Chief Financial Officer and Corporate
Secretary Tel: (905) 206-7100, Fax: (905) 206-7114, Website:

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InnVest Real Estate Investment Trust

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