NEW YORK, Aug. 17, 2015 /PRNewswire/ -- Today, Rambleside Holdings, an investment firm specializing in real estate assets and securities, released a letter sent to the Board of Directors of Morgans Hotel Group Co., expressing concern that a potential strategic transaction would substantially undervalue the Company. The full text of the letter can be found below:
August 14, 2015
Members of the Board of Directors
Morgan Hotels Group Co.
237 Madison Avenue
New York, NY 10016
Attn: Mr. Howard M. Lorber, Chairman of the Board
Dear Members of the Board:
Rambleside Holdings ("Rambleside") is a family-controlled investment firm active across the real estate spectrum including direct investing, development, lending and special situations investing. Rambleside, and its affiliated entities, are currently one of the largest shareholders of Morgans Hotel Group Co. (the "Company").
Recent press reports suggest that the Company is currently in active negotiations regarding a potential strategic transaction with one or several parties. We are deeply concerned that the potential transaction would substantially undervalue the Company and any breakup fee or other limitation on the Company's ability to pursue strategic alternatives will further risk shareholder value. We believe the path to maximize value for all stakeholders involves selling the Company or key assets, separately or as a package, in a widely marketed sale process and/or merging the management company with a world class hotel and brand manager that can leverage its platform to maximize value of the Company's coveted brands.
As indicated during a conversation with Mr. Lorber yesterday, Rambleside would like to participate in that process. Specifically, we would be prepared to pursue a transaction that would value the Company at a meaningful premium over the current trading price. We have hired legal advisers and are confident we can secure the necessary financing. We are disappointed that the Company has refused to engage with us on this opportunity.
We look forward to hearing from you to share our views in person. Thank you for your consideration. We reserve the right to make this letter public.
Chief Executive Officer
Rambleside Holdings, LLC
SOURCE Rambleside Holdings, LLC