An investigation for investors in NASDAQ:MHGC shares was announced concerning whether the takeover of Morgans Hotel Group Co. by SBE for $2.25 per share.
Investors who purchased shares of Morgans Hotel Group Co. (NASDAQ:MHGC) and currently hold any of those NASDAQ:MHGC shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
The investigation by a law firm concerns whether certain directors of Morgans Hotel Group Co. breached their fiduciary duties owed to NASDAQ:MHGC investors in connection with the proposed acquisition.
On November 1, 2013, Morgans Hotel Group Co. (NASDAQ:MHGC) confirmed that it has received a letter from The Yucaipa Companies, LLC containing an unsolicited and conditional proposal to acquire Morgans Hotel Group for $8.00 per share.
On May 09, 2016 Morgans Hotel Group Co. (NASDAQ:MHGC), announced it has entered into an agreement under which Morgans Hotel Group Co will be acquired by SBE. Under terms of the agreement, SBE will acquire all of the outstanding shares of Morgans Hotel Group Co common stock for $2.25 per share in cash, which, together with the exchange of Morgans Series A preferred securities, the assumption of debt and transfer of capitalized leases, represents a total enterprise value of approximately $794 million.
However, given that in November 2013 The Yucaipa Companies, LLC offered to acquire Morgans Hotel Group Co for $8.00 per share, the investigation concerns whether the $8-offer is unfair to NASDAQ:MHGC stockholders. More specifically, given that certain Morgans Hotel Group Co shareholders representing approximately 29 percent of the Company’s outstanding shares of common stock have already signed voting agreements in support of this transaction, including OTK Associates, Pine River Capital Management and Vector Group Ltd, the investigation concerns whether the Morgans Hotel Group Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders’ best interests in connection with the proposed sale.
Those who are current investors in NASDAQ:MHGC shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com