An investigation on behalf of investors of Morgans Hotel Group Co. (NASDAQ:MHGC) in connection with the proposed takeover was announced and NASDAQ:MHGC stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 11/13/2013 -- An investigation on behalf of investors, who currently hold shares of Morgans Hotel Group Co. (NASDAQ:MHGC) shares, was announced concerning whether the takeover of Morgans Hotel Group Co. by The Yucaipa Companies, LLC for $8.00 per share is unfair to NASDAQ:MHGC stockholders.
Investors who purchased shares of Morgans Hotel Group Co. (NASDAQ:MHGC) and currently hold any of those NASDAQ:MHGC shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm concerns whether certain officers and directors of Morgans Hotel Group Co. breached their fiduciary duties owed to NASDAQ:MHGC investors in connection with the proposed acquisition.
On November 1, 2013, Morgans Hotel Group Co. (NASDAQ:MHGC) confirmed that it has received a letter from The Yucaipa Companies, LLC containing an unsolicited and conditional proposal to acquire Morgans Hotel Group for $8.00 per share.
However, given that at least one analyst has set the high target price of NASDAQ:MHGC shares at $9.00 per share and that shares of Morgans Hotel Group Co. (NASDAQ:MHGC) traded as recently as July 2013 as high as $8.11 per share, , the investigation concerns whether the $8-offer is unfair to NASDAQ:MHGC stockholders. More specifically, the investigation concerns whether the Morgans Hotel Group Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.
On November 12, 2013, NASDAQ:MHGC shares closed at $7.75 per share.
Those who are current investors in Morgans Hotel Group Co. shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Joelle Day
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com