Morgans Hotel Says Special Committee Exploring Potential Strategic Alternatives

(RTTNews) - Morgans Hotel Group Co (MHGC) on Wednesday commented on its ongoing review of strategic alternatives. The special transaction committee of the Morgans board, formed at the beginning of the year, retained Morgan Stanley & Co. LLC in May to assist the company in evaluating a full range of strategic alternatives.

The company today disclosed that the special transaction committee has directed Morgan Stanley to reach out to possible counterparties regarding their interest in potential transactions that could provide Morgans an opportunity to maximize value for its stockholders.

The special transaction committee is committed to exploring all potential strategic alternatives, including capital raising, asset sales, strategic partnerships, a sale of the entire company, a sale of component parts of the Company, acquisitions and other alternatives.

There can be no assurance that the special transaction committee's review of strategic alternatives will result in a transaction.

Morgans Hotel stock was up $0.38 or 5.05% at $7.90 in after-hours trade on the Nasdaq.