Reuters: Global Markets: Morgans Hotel says board nominees to consider sale of company

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Morgans Hotel says board nominees to consider sale of company Jun 4th 2013, 12:52 Tue Jun 4, 2013 8:52am EDT (Reuters) - Morgans Hotel Group Co (MHGC.O), embroiled in a proxy battle with its largest shareholder, said its slate of director nominees, if reelected, would consider selling the company. The boutique hotel operator said it was responding to feedback from stockholders and the recent receipt of unsolicited expressions of interest from five potential strategic buyers. Shares of Morgans Hotel, which had a market value of about $218 million at the close of trade on Monday, rose as much as 17 percent in trading before the bell. The company will hold its annual stockholders' meeting on June 14. OTK Associates LLC, Morgans' largest shareholder with a 13.88 percent stake, has been waging a proxy war to overhaul the board, seeking to return the company to profitability. The company has not posted a profit since the second quarter of 2007. Morgans' announcement comes about a week after shareholder Caerus Global Investors asked the board to launch a "formal process" to sell the company. Morgans said on Tuesday that a sale was among the strategic alternatives that its nominated directors would pursue if reelected. The company said in May that it had rejected two takeover bids from a "large international hotel company" in the preceding six months. It said the offer of $7.50 per share undervalued the company. (Reporting by Bijoy Koyitty in Bangalore; Editing by Joyjeet Das) Link this Share this Digg this Email Reprints

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