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Morgans Hotel Group Co. (MHGC): Pine River Capital Management Supports SBEEG Holdings’ Acquisition

Morgans Hotel Group Co. (NASDAQ:MHGC) has signed an agreement upon which it will be acquired by SBEEG Holdings LLC. This transaction in which all outstanding shares of the company will be obtained by the SBEEG Holdings LLC is expected to close in the third or fourth quarter of 2016. In a newly-amended filing with the US Securities and Exchange Commission, Brian Taylor‘s Pine River Capital Management, which owns 3.14 million common shares of  Morgans Hotel Group Co. (NASDAQ:MHGC), or 9.0% of the company’s outstanding stock stated its support for the transaction.

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Morgans Hotel Group Co. (NASDAQ:MHGC) is a lifestyle hospitality group that operates and develops boutique hotels across the US, Europe, and some other overseas destinations. Since the beginning of the year, Morgans Hotel Group’s stock has lost 37.09%. For the first quarter of 2016, the company reported a loss per share of $0.38, and revenue of $51.02 million, versus estimates of a loss of $0.41 and $49.5 million respectively.

According to Insider Monkey’s database the number of hedge funds long the Morgans Hotel Group Co. (NASDAQ:MHGC) at the end of December 13 funds disclosed positions in this stock, versus 18 funds a quarter earlier. Brian Taylor’s Pine River Capital Management reported the most valuable positions, worth around $10.6 million, followed by Gordy Holterman and Derek Dunn’s Overland Advisors with a $5.1 million stake. Other investors that were long the stock encompass Steve Tannenbaum’s Greenwood Investments,  First Eagle Investment Management, and Mario Gabelli’s GAMCO Investors.

On the other hand, investors who decided to dump their investments in this stock heading into 2016, include Andrew Goldman’s Seven Locks Capital Management, which sold off the biggest position, valued at $2.8 million in stock, while John Thiessen’s  Vertex One Asset Management, which dropped a position worth around $0.7 million.

You can access the original SEC filing by clicking here.

Ownership Summary Table

Name Sole Voting Power Shared Voting Power Sole Dispositive Power Shared Dispositive Power Aggregate Amount Owned Power Percent of Class
Pine River Capital Management 0 3,139,668 0 3,139,668 3,139,668 9.0%
Brian Taylor 0 3,139,668 0 3,139,668 3,139,668 9.0%

Brian Taylor
Brian Taylor
Pine River Capital Management

Page 1 of 6 – SEC Filing



(Rule 13d-101)

RULE 13d-2(a)

(Amendment No. 1)

Morgans Hotel Group Co.
(Name of Issuer)

Common Stock, par value $0.01 per share
(Title of Class of Securities)

(CUSIP Number)

Tim O’Brien
c/o Pine River Capital Management L.P.
601 Carlson Parkway
7th Floor
Minnetonka, MN 55305
p. (612) 238-3300
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)

May 10, 2016
(Date of Event which Requires Filing of This Statement)

If the filing person has previously filed a statement on Schedule 13G to
report the acquisition that is the subject of this Schedule 13D, and is filing
this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the
following box [ ].

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