The Board’s action will accelerate the expiration of the Company’s stockholder rights plan, which was scheduled to expire in October 2015, by two years. The stockholder rights plan was originally adopted in October 2007 and was extended several times, most recently in October 2012.
Morgans Hotel Group Co. (NASDAQ: MHGC) announced that its Board of Directors has voted to terminate the Company’s stockholder rights plan, commonly known as a “poison pill,” on or before October 3, 2013. Additionally, the Company has established a new policy that requires stockholder approval of any future stockholder rights plan either prior to, or within twelve months of adoption of, such plan.
“The decision to terminate the plan early and establish a new policy reflects our ongoing commitment to good corporate governance practices and responsiveness to our stockholders,” said Michael Gross , CEO of the Company.
The Board’s action today will accelerate the expiration of the Company’s stockholder rights plan, which was scheduled to expire in October 2015, by two years. The stockholder rights plan was originally adopted in October 2007 and was extended several times, most recently in October 2012.
As a result of the Board’s action, UNITE HERE has agreed to withdraw its stockholder proposal related to the Company’s stockholders rights plan, and therefore such proposal will not be presented at the Company’s 2013 annual meeting of stockholders. Stockholders who have already voted on the WHITE proxy card do not need to take further action.
Morgans Hotel Group Co. (NASDAQ: MHGC) is widely credited as the creator of the first “boutique” hotel and a continuing leader of the hotel industry’s boutique sector. Morgans Hotel Group operates Delano in South Beach and Marrakech, Mondrian in Los Angeles, South Beach and New York, Hudson in New York, Morgans and Royalton in New York, Shore Club in South Beach, Clift in San Francisco, Ames in Boston and Sanderson and St Martins Lane in London. Morgans Hotel Group has ownership interests or owns several of these hotels. Morgans Hotel Group has other property transactions in various stages of completion, including Delano properties in Las Vegas, Nevada; Cesme, Turkey and Moscow, Russia; Mondrian properties in London, England; Istanbul, Turkey; Doha, Qatar and Baha Mar in Nassau, The Bahamas; and a Hudson in London, England. Morgans Hotel Group also owns a 90% controlling interest in The Light Group, a leading lifestyle food and beverage company.