Yucaipa Cos has offered to purchase Morgans Hotel Group Co for USD 261 million, a regulatory filing revealed. The offer of billionaire Ron Burkle's company amounted to USD 8 per share. The total offer was based on the outstanding 32.6 million shares of Morgans Hotel Group Co as of August 6. Bloomberg reported that the shares of the hotel group had increased 28% in 2013 even if it fell one percent to USD 7.09 apiece at the most recent close of New York trading.
In the US Securities and Exchange Commission filing, Yucaipa said about the offer, "Yucaipa, including our investment in Morgans, manages a substantial portfolio of hospitality-related assets with dedicated available resources to improve the operating performance of our companies. We are confident that this platform could deliver synergistic value to Morgans under our ownership."
Yucaipa has an estimated 27% stake in Morgans Hotel Group. Burkle's company also said it would be able to close the purchase in an expeditious manner. Yucaipa also said Morgans Hotel Group should look for other bids to see if it could get a higher offer.
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