Mystery bidder takes on Ron Burkle over Morgans Hotel Group

Miami /
Sep.September 15, 2016 10:30 AM

From the New York websiteA mystery rival suitor is threatening to derail Ron Burkle’s $800 million bid to buy Morgans Hotel Group — and the investor isn’t happy about it.

The struggling hotel company announced the revised offer from an unnamed bidder on Wednesday, and promptly delayed a shareholder vote on Burkle’s bid until Sept. 26.

In a letter to its board, the company said the rival bidder’s “purported financing source indicated it would provide up to $500 million in capital to support that transaction, but very little information about this financing has been provided.”

Burkle, the co-founder of private equity firm Yucaipa Companies, bid $2.25 per share for the hotel company – or around $800 million.  The rival bidder offered $2.75 per share.

In May, Sam Nazarian’s SBE Entertainment Group reached a deal to buy Morgans for $2.25 per share, but one shareholder subsequently sued to block it.  According to the Post, SBE is Burkle’s partner in his bid for the company, which includes the Hudson hotel in Columbus Circle.

Morgans had $575 million in debt and just $11 million in cash at the end of June, the Post reported. In its May issue, The Real Deal went behind the scenes to trace the origins of the company’s woes.  [NYP]Konrad Putzier


Related Articles

arrow_forward_ios
Planned Waldorf Astoria Miami wins design approval
Planned Waldorf Astoria Miami wins design approval
Planned Waldorf Astoria Miami wins design approval
Rockpoint, InSite buy B Ocean Resort Fort Lauderdale for $127M
Rockpoint, InSite buy B Ocean Resort Fort Lauderdale for $127M
Rockpoint, InSite buy B Ocean Resort Fort Lauderdale for $127M
Dan Gelber uncut: Miami Beach mayor caught on tape courting developers for Ocean Drive takeover
Dan Gelber uncut: Miami Beach mayor caught on tape courting developers for Ocean Drive takeover
Dan Gelber uncut: Miami Beach mayor caught on tape courting developers for Ocean Drive takeover
Fort Lauderdale Beach hotel portfolio trades for $27M
Fort Lauderdale Beach hotel portfolio trades for $27M
Fort Lauderdale Beach hotel portfolio trades for $27M
Wheelock pays $106M for The Ben hotel near downtown West Palm Beach
Wheelock pays $106M for The Ben hotel near downtown West Palm Beach
Wheelock pays $106M for The Ben hotel near downtown West Palm Beach
David Grutman and Pharrell’s Goodtime Hotel in South Beach scores $164M refi
David Grutman and Pharrell’s Goodtime Hotel in South Beach scores $164M refi
David Grutman and Pharrell’s Goodtime Hotel in South Beach scores $164M refi
Foreclosure lawsuit targets DoubleTree hotel near Miami International Airport
Foreclosure lawsuit targets DoubleTree hotel near Miami International Airport
Foreclosure lawsuit targets DoubleTree hotel near Miami International Airport
(Facebook via Hotel Astor Miami Beach)
Shuttered Hotel Astor in Miami Beach gets a new owner
Shuttered Hotel Astor in Miami Beach gets a new owner
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...