Billionaire Ron Burkle’s Yucaipa Cos. has offered to buy Morgans Hotel Group for $8 a share, according to this article from Bloomberg.com.
The offer comes after Yucaipa, which owns 27 percent of Morgans’ shares, urged the company to sell in September and expressed concern that the current owners were not creating value for its shareholders. Yucaipa filed a lawsuit last month against Morgans, stating that the company was undermining its right to have an observer attend the boutique-hotel operator’s board meetings.
The offer has a total value of $261 million, based on 32.6 million shares outstanding as of Aug. 6.
More over on Bloomberg.com.
