Shareholder Seizes Control Of Morgans Board

Law360, New York (June 14, 2013, 9:59 AM EDT) -- Morgans Hotel Group Co.'s largest shareholder seized control of its board Friday, almost certainly dooming a planned $230 million debt swap with billionaire Ron Burkle and casting doubt over the company's sale process.

Seven nominees from OTK Associates LLC, an investment firm controlled by the Olshan hedge-fund family and the Taubman mall moguls, defeated an incumbent slate at a shareholder meeting in New York. A final, certified tally is expected next week, but sources close to the situation confirm it wasn't close. The news was first reported...
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