Morgans Hotel Group Co (MHGC)

[tedkov]

Morgans Hotel Sued by Shareholders Over Merger Bid - (via NewsPoints Desk)
July 18, 2016
Tags: NewsPoints Morgans SBE United States Corporate Affairs Mergers &
Acquisitions

A group of Morgans Hotel shareholders filed a lawsuit in Delaware Chancery Court attempting
to block the $80 million purchase of the company by SBE.
The shareholder accused Morgan’s board of breach of fiduciary duties, arguing
that the purchase price of $2.25 per share is insufficient in light of the company's growth
prospects and that deal-protection clauses in the merger agreement preclude other
companies from submitting successful competing offers. In addition, the lawsuit alleges that senior management obtained personal benefits for their own self interests in agreeing to sell the company.
Morgans did not immediately respond to requests for a comment.
To contact the law firm handling the matter on behalf of shareholders of
Morgans for more information call toll free 800.511.7037
Shareholders have until July 22, 2016 to notify law firm to include their shares