Morgans Hotel Group, the boutique hotel company embroiled in a proxy battle with its largest shareholder, said it turned down an acquisition bid from “a large international hotel company” late last year.
The company was re-approached with the same bid in February.
Morgans, which didn’t identify the bidder, said it first received a bid for $7.50 a share last November. Morgans was trading in the low $6 range in November and was trading in the $5.50 range in February.
“The Company's board responded that it was not interested at the proposed price, but that it might entertain a proposal at a significantly higher price,” Morgans said in a May 17 statement.
Morgans has been battling with its largest shareholder, OTK Associates, over what OTK says is poor management. OTK criticized Morgans for agreeing to pursue a share offering and sell its interests in the Delano Hotel Miami and nightclub operator The Light Group to debtholder Yucaipa Cos. in an effort to improve its balance sheet.
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