Morgans Hotel Delays Rights Issue As Activists Square Off

Law360, New York (April 8, 2013, 4:34 PM EDT) -- Morgans Hotel Group Co. agreed Friday to delay a $100 million rights offering that its largest stockholder claims is a backdoor effort to build up friendly voting blocs and push through a recapitalization by Ronald Burkle's Yucaipa Cos. LLC.

The offering had been scheduled for April 18 but will be postponed until after the company's annual meeting May 15, when shareholder OTK Associates LLC plans to nominate its own slate of directors. A permanent injunction hearing will be held May 13 or 14.

OTK, which owns...
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