Controversies
In mid-2008 Columbia Pacific Opportunity Fund, an investment manager for the Baty family, the Seattle founders of Emeritus Corporation, submitted an unsolicited acquisition offer of $9.50 per share to acquire Red Lion. At the time, Columbia Pacific held 12.7 percent of Red Lion.
By October Columbia Pacific had withdrawn its offer and, shortly thereafter, the Red Lion board of directors enacted a poison pill plan, drawing the ire of Columbia Pacific who stated its belief that Red Lion should be liquidated because company-owned assets were in "excess of Red Lion's market capitalization."
Later that year, after the share price increased significantly, Red Lion removed its poison pill.
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