A slightly confusing statement on Friday out of Morgans Hotel, the group founded by Ian Schrager, who is credited with creating the whole concept of a boutique bed-for-the-night…
NEW YORK, May 17, 2013 /PRNewswire/ — Morgans Hotel Group Co. (MHGC) (“MHG” or the “Company”) today provided clarification regarding statements made in a filing submitted by The Yucaipa Companies (“Yucaipa”).
All things considered, investment banks managed a stellar first-quarter — with results lifted by performances in their fixed income units.
The big question hanging over bank-watchers since, has been whether the IBs can repeat that performance in subsequent quarters. Some commentators, like James Kwak over at The Baseline Scenario, were sceptical. In fact, Kwak noted back in April that in order to repeat its Q1 earnings of $2.1bn in net income, a bank like JP Morgan would have to repeat “unprecedented, exceptional, super-duper” fixed income trading revenues quarter after quarter. Read more
Investors in Morgans Hotel Group are considering forming a shareholder action group after it emerged that the board of the luxury hotel group last week rejected a $1.4bn bid from a Dubai-based investment fund, reports The Times. David Hamamoto, Morgans chairman, wrote to Zabeel Investments last week to notify the sovereign wealth fund that its indicative offer of $22 a share for the Nasdaq-listed company had been unanimously rejected by the board. Zabeel is understood to be perplexed given that the shares were trading at about $10 at the end of July. Most shareholders contacted by The Times said the board should consider any offer above the $20 at which Morgans floated two years ago.
A battle royal is developing for some of the world’s most stylish hotels as two sovereign wealth funds from Dubai and Abu Dhabi battle for control of Morgans Hotel Group, reports The Times. Zabeel, a Dubai-based fund, and Mubadala, Abu Dhabi investment arm, are both understood to have approached Morgans with offers valuing it at more than $600m, or $1.4bn including debt. Morgans, founded by Ian Schrager, the so-called “king of hip”, runs 10 hotels renowned for their style and chic, including the Royalton and Morgans hotels in New York and the Sanderson and St Martins Lane in London. The bidders, controlled by the royal families of Dubai and Abu Dhabi respectively, are understood to be undertaking some preliminary due diligence with a view to making formal offers.