Billionaire Ron Burkle: In a recent SEC filing, Ronald W. Burkle, founder of the The Yucaipa Companies, disclosed a letter sent to the board of Morgans Hotel Group Co. (NASDAQ:MHGC) urging it to sell the company. “It is time to fulfill your fiduciary duties to the stockholders and engage in a sales process and to disclose to the stockholders promptly any inquiries or offers to purchase the company or any of its material assets,” the letter stated.
This isn’t the first time Burkle has asked Morgans to sell itself to a larger bidder; back in September, it wrote to Chairman Jason Kalisman: ““Stop playing with the company as though it’s your new toy […] get Morgans on the market.”
Yucaia Companies holds over 12.5 million shares of Morgans Hotel Group, with the stake representing 27.4% of the company.
Check out the full text of the letter sent by Burkle:
And the one from earlier this year: