Morgans Hotel Group Reviews Strategic Alternatives
Wednesday May 14th, 2014 - 11:46AM W
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NEW YORK—Morgans Hotel Group Co. has revealed that earlier this year its Board of Directors formed a special transaction committee to evaluate a full range of alternatives, including the potential sale or merger of the company.
In addition, the committee earlier this month retained Morgan Stanley & Co. LLC as its financial advisor to assist the company in exploring a full range of strategic alternatives.
According to Jason T. Kalisman, Morgans' Chairman of the Board, "As fiduciaries, Morgans' Board is committed to maximizing value for our stockholders and, as we have consistently started, the Board is constantly exploring all opportunities to do what is right for our stockholders. This has always including evaluating transactions as large as a potential sale or merger, but undertaken from a position of strength and flexibility."
According to the company, less than a year ago stockholders were faced with a massively dilutive and value destroying transaction with affiliate of The Yucaipa Companies, LLC as counterparts. The company further maintains that recent Yucaipa actions to support Kerrisdale Capital should be taken as a clear warning of Yucaipa's desire to insert itself back into control of Morgans.
Tags: Morgans • sale • Hospitality •
When you hear all the lodging industry projections for the months and years to come, much of the robust growth is forecast to be the result of the expected influx of travelers from China. In what could only be seen as good news for the industry, that expectation moved a little closer to reality when President Obama signed a visa waiver extension for Chinese travelers earlier this month.