Shareholders not expected to oust Morgans Hotel board

Kerrisdale Capital head nominated new slate seeking to sell hotel group

TRD New York /
Apr.April 24, 2014 08:30 AM

Investors in the Morgans Hotel Group are not likely to vote in favor a nominated slate of directors — and supporters of shareholder activist Ron Burkle — due to an alleged lack of experience, the New York Post reported.

Jason Taubman Kalisman, who took over as interim CEO of the Morgans Hotel Group following Michael Gross’ resignation last year, and Burkle have been battling it out for control of Morgans. Sahm Adrangi of private investment firm Kerrisdale Capital recently nominated a new slate with the intention of seeking to sell the hotel group. Morgans has been urging investors to re-elect the board currently in power. A decision about the board will made at an annual meeting set for May 14.

“Our understanding is that some investors do not believe the Kerrisdale slate is strong enough,” Chris Agnew, a senior analyst at MKM, told the New York Post. “If that perception does not change, I would think the current board will likely keep their seats.”

Last month, Kalisman reportedly reached an agreement with Burkle, who owns Morgans’ debt and preferred shares, to start looking for a buyer by June. Morgans Hotel Group owns the Delano, Mondrian and Hudson Hotel brands. [NYP]Mark Maurer


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