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
Hotel Clifton at 1343 Collins Avenue (Google Maps, Getty)
Hawkins Way Capital sells Clifton Hotel in South Beach
Hawkins Way Capital sells Clifton Hotel in South Beach
Chetrit Group’s Joseph Chetrit and Collins Park Hotel rendering (Getty, Chetrit Group)
Chetrit nabs $83M construction loan for Collins Park project
Chetrit nabs $83M construction loan for Collins Park project
Photo illustration of Bazbaz Development's Sonny Bazbaz along with a rendering of the planned development at 2134 North Miami Avenue in Wynwood (Getty, Bazbaz Development, LoopNet)
Bazbaz buys Wynwood development site for mixed-use project
Bazbaz buys Wynwood development site for mixed-use project
Mitch Novick with rendering of Bulgari hotel (Mitch Novick, Bulgari Hotel and Resorts, Getty)
Lawsuit targets Miami Beach deal with Bulgari hotel developers
Lawsuit targets Miami Beach deal with Bulgari hotel developers
Focus’ Tim Anderson and the purchased development site at 128 Southwest Seventh Street in Miami’s Brickell neighborhood (Work with Focus, Google Maps)
Focus pays $28M for Brickell apartments development site
Focus pays $28M for Brickell apartments development site
Highgate Capital Management's Mahmood Khimji and Mehdi Khimji with 5981 Okeechobee Boulevard (Highgate Capital Management, La Quinta by Wyndham)
Highgate cashes out of another South Florida La Quinta
Highgate cashes out of another South Florida La Quinta
From left: Hyatt's Mark Hoplamazian and Gencom's Karim Alibhai along with a rendering of the proposed James L. Knight Center, a three-tower development at 400 Southeast Second Avenue (Getty, Hyatt, Gencom)
Miami voters approve James L. Knight Center redevelopment
Miami voters approve James L. Knight Center redevelopment
Related Companies' Stephen Ross and the Deauville Beach Resort (Google Maps, Getty)
Billionaire Ross’ proposal to upzone Deauville site in Miami Beach fails
Billionaire Ross’ proposal to upzone Deauville site in Miami Beach fails
arrow_forward_ios

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

Loading...