Following months of negotiations, merger discussions between Morgans Hotel Group and SBE Entertainment Group have collapsed, reports The Wall Street Journal.
The two parties involved were Ronald Burkle, a preferred equity holder in Morgans, who was in support of the merger. Jason Kalisman, a Morgans board member whose investment firm OTK Associates is the largest shareholder, believed the company was giving away too much to Burkle. Burkle was set to become chairman of the combined company, and would have acquired two Morgans hotels as part of the deal.
According to the article, Burkle said he would not agree to a deal without full board approval.
