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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 12 )*
Morton's Restaurant Group, Inc.
(Name of Issuer)
Common Stock, $.01 par value
(Title of Class of Securities)
619429 10 3
(CUSIP Number)
Barry W. Florescue
c/o BFMA Holding Corporation
50 East Sample Road, Suite 400
Pompano Beach, Florida 33064
(800) 675-6115
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
July 11, 2002
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of (Sections) 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check
the following box [ ].
NOTE: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See (Section) 240.13d-7(b) for
other parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 (the "Act") or otherwise subject to the liabilities of that section of the
Act but shall be subject to all other provisions of the Act (however, see the
Notes).
SCHEDULE 13D
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CUSIP No. 619429 10 3
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1) Name of Reporting Persons
I.R.S. Identification No. of Above Persons (entities only)
BFMA HOLDING CORPORATION
--------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group
(See Instructions) (a) [X}
(b) [ ]
--------------------------------------------------------------------------------
3) SEC Use Only
--------------------------------------------------------------------------------
4) Source of Funds (See Instructions)
WC
--------------------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6) Citizenship or Place of Organization
DELAWARE
--------------------------------------------------------------------------------
7) Sole Voting Power
488,500
NUMBER OF ---------------------------------------------------------------
SHARES 8) Shared Voting Power
BENEFICIALLY 0
OWNED BY ---------------------------------------------------------------
EACH 9) Sole Dispositive Power
REPORTING 488,500
PERSON ---------------------------------------------------------------
WITH 10) Shared Dispositive Power
0
--------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person
488,500
--------------------------------------------------------------------------------
12) Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [ ]
--------------------------------------------------------------------------------
13) Percent of Class Represented by Amount In Row (11)
11.7%
--------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions)
CO
--------------------------------------------------------------------------------
2
--------------------------------------------------------------------------------
CUSIP No. 619429 10 3
--------------------------------------------------------------------------------
1) Name of Reporting Persons
I.R.S. Identification No. of Above Persons (entities only)
FLORESCUE FAMILY CORPORATION
--------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group
(See Instructions) (a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3) SEC Use Only
--------------------------------------------------------------------------------
4) Source of Funds (See Instructions)
WC
--------------------------------------------------------------------------------
5 Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6) Citizenship or Place of Organization
NEVADA
--------------------------------------------------------------------------------
7) Sole Voting Power
29,100
NUMBER OF ---------------------------------------------------------------
SHARES 8) Shared Voting Power
BENEFICIALLY 0
OWNED BY ---------------------------------------------------------------
EACH 9) Sole Dispositive Power
REPORTING 29,100
PERSON ---------------------------------------------------------------
WITH 10) Shared Dispositive Power
0
--------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person
29,100
--------------------------------------------------------------------------------
12) Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [ ]
--------------------------------------------------------------------------------
13) Percent of Class Represented by Amount In Row (11)
0.7%
--------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions)
CO
--------------------------------------------------------------------------------
3
--------------------------------------------------------------------------------
CUSIP No. 619429 10 3
--------------------------------------------------------------------------------
1) Name of Reporting Persons
I.R.S. Identification No. of Above Persons (entities only)
BARRY W. FLORESCUE
--------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group
(See Instructions) (a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3) SEC Use Only
--------------------------------------------------------------------------------
4) Source of Funds (See Instructions)
AF
--------------------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6) Citizenship or Place of Organization
UNITED STATES
--------------------------------------------------------------------------------
7) Sole Voting Power
517,600
Number of --------------------------------------------------------------
Shares 8) Shared Voting Power
Beneficially 56,300
Owned by --------------------------------------------------------------
Each 9) Sole Dispositive Power
Reporting 517,600
Person --------------------------------------------------------------
With 10) Shared Dispositive Power
56,300
--------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person
573,900
--------------------------------------------------------------------------------
12) Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [ ]
--------------------------------------------------------------------------------
13) Percent of Class Represented by Amount In Row (11)
13.7%
--------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions)
IN
--------------------------------------------------------------------------------
4
--------------------------------------------------------------------------------
CUSIP No. 619429 10 3
--------------------------------------------------------------------------------
1) Name of Reporting Persons
I.R.S. Identification No. of Above Persons (entities only)
NED L. SIEGEL
--------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group
(See Instructions) (a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3) SEC Use Only
--------------------------------------------------------------------------------
4) Source of Funds (See Instructions)
AF
--------------------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6) Citizenship or Place of Organization
UNITED STATES
--------------------------------------------------------------------------------
7) Sole Voting Power
0
NUMBER OF --------------------------------------------------------------
SHARES 8) Shared Voting Power
BENEFICIALLY 56,300
OWNED BY --------------------------------------------------------------
EACH 9) Sole Dispositive Power
REPORTING 0
PERSON --------------------------------------------------------------
WITH 10) Shared Dispositive Power
56,300
--------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person
56,300
--------------------------------------------------------------------------------
12) Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [ ]
--------------------------------------------------------------------------------
13) Percent of Class Represented by Amount In Row (11)
1.3%
--------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions)
IN
--------------------------------------------------------------------------------
5
--------------------------------------------------------------------------------
CUSIP No. 619429 10 3
--------------------------------------------------------------------------------
1) Name of Reporting Persons
I.R.S. Identification No. of Above Persons (entities only)
RICHARD A. BLOOM
--------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group
(See Instructions) (a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3) SEC Use Only
--------------------------------------------------------------------------------
4) Source of Funds (See Instructions)
AF
--------------------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6) Citizenship or Place of Organization
UNITED STATES
--------------------------------------------------------------------------------
7) Sole Voting Power
10,000
NUMBER OF -------------------------------------------------------------
SHARES 8) Shared Voting Power
BENEFICIALLY 0
OWNED BY -------------------------------------------------------------
EACH 9) Sole Dispositive Power
REPORTING 10,000
PERSON -------------------------------------------------------------
WITH 10) Shared Dispositive Power
0
--------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person
10,000
--------------------------------------------------------------------------------
12) Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [ ]
--------------------------------------------------------------------------------
13) Percent of Class Represented by Amount In Row (11)
0.2%
--------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions)
IN
--------------------------------------------------------------------------------
6
--------------------------------------------------------------------------------
CUSIP No. 619429 10 3
--------------------------------------------------------------------------------
1) Name of Reporting Persons
I.R.S. Identification No. of Above Persons (entities only)
CHARLES W. MIERSCH
--------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group
(See Instructions) (a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3) SEC Use Only
--------------------------------------------------------------------------------
4) Source of Funds (See Instructions)
AF
--------------------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6) Citizenship or Place of Organization
UNITED STATES
--------------------------------------------------------------------------------
7) Sole Voting Power
1,000
NUMBER OF --------------------------------------------------------------
SHARES 8) Shared Voting Power
BENEFICIALLY 0
OWNED BY --------------------------------------------------------------
EACH 9) Sole Dispositive Power
REPORTING 1,000
PERSON --------------------------------------------------------------
WITH 10) Shared Dispositive Power
0
--------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person
1,000
--------------------------------------------------------------------------------
12) Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [ ]
--------------------------------------------------------------------------------
13) Percent of Class Represented by Amount In Row (11)
0.0%
--------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions)
IN
--------------------------------------------------------------------------------
7
--------------------------------------------------------------------------------
CUSIP No. 619429 10 3
--------------------------------------------------------------------------------
1) Name of Reporting Persons
I.R.S. Identification No. of Above Persons (entities only)
MARIETTA CORPORATION
--------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group
(See Instructions) (a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3) SEC Use Only
--------------------------------------------------------------------------------
4) Source of Funds (See Instructions)
WC
--------------------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6) Citizenship or Place of Organization
NEW YORK
--------------------------------------------------------------------------------
7) Sole Voting Power
0
NUMBER OF --------------------------------------------------------------
SHARES 8) Shared Voting Power
BENEFICIALLY 0
OWNED BY --------------------------------------------------------------
EACH 9) Sole Dispositive Power
REPORTING 0
PERSON --------------------------------------------------------------
WITH 10) Shared Dispositive Power
0
--------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person
0
--------------------------------------------------------------------------------
12) Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [ ]
--------------------------------------------------------------------------------
13) Percent of Class Represented by Amount In Row (11)
0.0%
--------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions)
CO
--------------------------------------------------------------------------------
8
This Amendment No. 12 to the Statement on Schedule 13D amends and
supplements the Statement in Schedule 13D relating to the event date of January
25, 2001, filed by BFMA Holding Corporation, Florescue Family Corporation, Barry
W. Florescue and Ned L. Siegel as amended by Amendment No. 1 relating to the
event date of March 21, 2001, Amendment No. 2 relating to the event date of
April 26, 2001, Amendment No. 3 relating to the event date of June 27, 2001,
Amendment No. 4 relating to the event date of July 19, 2001, Amendment No. 5
relating to the event date of July 27, 2001, Amendment No. 6 relating to the
event date of September 6, 2001, Amendment No. 7 relating to the event date of
November 8, 2001, Amendment No. 8 relating to the event date of February 14,
2002, Amendment No. 9 relating to the event date of March 21, 2002, Amendment
No. 10 relating to the event date of May 14, 2002 and Amendment No. 11 relating
to the event date of June 5, 2002 (collectively, the "Schedule 13D").
Capitalized terms used herein and not defined herein shall have the meanings
assigned thereto in the Schedule 13D.
ITEM 4. PURPOSE OF TRANSACTION
The first paragraph of Item 4 has been amended to add the following:
On July 11, 2002, BFMA nominated three individuals - Richard A. Bloom,
Barry W. Florescue and Charles W. Miersch - for election to the Morton's Board
of Directors at its 2002 Annual Meeting of Stockholders. According to the
Company's most recent proxy statement, in the event that the Castle Harlan
merger is not completed, a 2002 Annual Meeting of Stockholders has been
scheduled to be held on August 28, 2002. Since the date of the 2002 Annual
Meeting of Stockholders occurs more than thirteen months after the date of the
previous year's annual meeting, May 10, 2001, BFMA determined that the
re-nomination of director nominees was necessary. BFMA intends to solicit
proxies in favor of its nominees to Morton's Board of Directors if the meeting
is held.
9
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
Exhibit A. Agreement of Joint Filing. (1)
Exhibit B. Definitive Proxy Statement, dated April 26, 2001. (2)
Exhibit C. Letter from BFMA to Morton's, dated May 1, 2001. (2)
Exhibit D. Commitment Letter from Icahn Associates Corp., dated May 1,
2001. (2)
Exhibit E. Letter from BFMA to Greenhill & Co., LLC, dated June 27,
2001. (3)
Exhibit F. Letter from BFMA to Morton's, dated July 19, 2001. (4)
Exhibit G. Letter from BFMA to Morton's, dated July 27, 2001. (5)
Exhibit H. Letter from BFMA to Morton's, dated November 8, 2001. (6)
Exhibit I. Letter from BFMA to Morton's Special Committee dated May 14,
2002. (7)
Exhibit J. Amended Agreement of Joint Filing, dated June 5, 2002. (8)
Exhibit K. Letter from BFMA to Morton's Special Committee, dated July 11,
2002. (9)
(1) Filed as an exhibit to Amendment No. 1 to the Statement on Schedule 13D.
(2) Filed as an exhibit to Amendment No. 2 to the Statement on Schedule 13D.
(3) Filed as an exhibit to Amendment No. 3 to the Statement on Schedule 13D.
(4) Filed as an exhibit to Amendment No. 4 to the Statement on Schedule 13D.
(5) Filed as an exhibit to Amendment No. 5 to the Statement on Schedule 13D.
(6) Filed as an exhibit to Amendment No. 7 to the Statement on Schedule 13D.
(7) Filed as an exhibit to Amendment No. 10 to the Statement on Schedule 13D.
(8) Filed as an exhibit to Amendment No. 11 to the Statement on Schedule 13D.
(9) Filed herewith.
10
SIGNATURES
After reasonable inquiry and to the best of the knowledge and belief of the
undersigned, the undersigned hereby certifies that the information set forth in
this Schedule 13D is true, complete and correct.
Dated: July 11, 2002
BFMA HOLDING CORPORATION
By: /s/ Barry W. Florescue
-----------------------------------
Name: Barry W. Florescue
Title: Chief Executive Officer
FLORESCUE FAMILY CORPORATION
By: /s/ Barry W. Florescue
-----------------------------------
Name: Barry W. Florescue
Title: President
MARIETTA CORPORATION
By: /s/ Barry W. Florescue
-----------------------------------
Name: Barry W. Florescue
Title: Chief Executive Officer
/s/ Barry W. Florescue
---------------------------------------
Barry W. Florescue
/s/ Ned L. Siegel
---------------------------------------
Ned L. Siegel
/s/ Richard A. Bloom
---------------------------------------
Richard A. Bloom
/s/ Charles W. Miersch
---------------------------------------
Charles W. Miersch
11
================================================================================
BFMA HOLDING CORPORATION
================================================================================
July 11, 2002
VIA FACSIMILE AND OVERNIGHT COURIER
Members of the Special Committee of
Morton's Restaurant Group, Inc.
Lee M. Cohn (Chairman)
Alan A. Teran
Robert L. Barney
c/o Morton's Restaurant Group, Inc.
3333 New Hyde Park Road
New Hyde Park, NY 11042
Gentlemen:
I have watched the proceedings of the special committee over the past month
and a half and I am writing to you to express my profound disappointment in your
actions. As you know, I have written several letters setting forth my concerns
about the manner in which the senior management, the directors and the special
committee of the Board of Directors of Morton's have conducted themselves over
the past 17 months.
I am absolutely disgusted by your rejection of Carl Icahn`s $17.00 per
share offer which is substantially superior to Castle Harlan's $16.00 price,
even with its condition that the company waive its "poison pill" rights
agreement provisions. These provisions were originally designed to protect a
company's shareholders from unwanted offers but are now being used against them
in order, in my opinion, to help you deliver Morton's to your colleagues Allen
Bernstein and John Castle. I am incensed that the company would state that it is
prohibited from waiving its "poison pill" under its merger agreement with Castle
Harlan. As you should be well aware, a company cannot, under current Delaware
law, contractually prevent itself from exercising its right to waive this type
of plan. Therefore, we question whether the special committee, in negotiating
away this right, breached its fiduciary duties to the shareholders of Morton's
under Delaware law. BFMA has alleged this very thing in its pending lawsuit
against you. In the interest of all the company's shareholders, I demand that
the special committee declare Mr. Icahn's latest $17.00 offer as a "superior
proposal".
I further demand that the special committee insist, if Castle Harlan wants
to remain as the high bidder, that it top the Icahn offer by a material amount,
rather than simply match the offer and waive certain closing conditions. If the
special committee feels that these customary conditions to closing a transaction
are important enough to differentiate one offer from another, then it appears to
me that you must have real concerns about Castle Harlan's ability to close the
deal.
The timing of your responses and Castle Harlan's responses to Mr. Icahn's
offers lead me to believe that the special committee has neither acted fairly
nor properly in this process. It appears more clearly to me today, after
watching your recent antics, you have failed to act in a manner that represents
the best interests of the company's shareholders.
--------------------------------------------------------------------------------
50 East Sample Road, Suite 400, Pompano Beach, Florida 33064
Members of the Special Committee of
Morton's Restaurant Group, Inc.
July 11, 2002
Page 2
I believe that this special committee should actively take certain steps to
keep the auction process as open and fair as possible in order to maximize value
for the company's shareholders. The first step would be to waive the company's
"poison pill" rights plan and the application of Section 203 of the Delaware
Business Corporation Law during the pendency of the sale process. This step
would allow large shareholders to meet with each other without risk of causing
the "poison pill" contained in the rights plan to be exercised or other adverse
effects to impact a potential acquiror. There are no defendable reasons to
maintain these "poison pill" provisions in light of your decision to sell the
company. In fact, maintaining the "poison pill" chills the process and
potentially precludes the company's shareholders' ability to get the best deal.
The second step would be to delay the company's special meeting from July
23, 2002 until the scheduled date of the annual meeting, August 28, 2002. This
step would allow more time for the current bidders to continue to increase their
offers and for other bidders to enter the process to make offers.
The third step would be to publicly release detailed second quarter
financial information sufficiently prior to any vote by the shareholders on an
offer and to give the shareholders (and any potentially interested parties) a
chance to adequately review this information. We note that Castle Harlan,
through John Castle, already has access to this information. We further note
that many of Morton's competitors have demonstrated dramatic recent financial
improvement in these past few months. As a substantial shareholder, I want to
know how the company has performed during this most recent period. It has been
more than three months since you agreed to the $12.60 price from Castle Harlan
and four months since we have seen any updates on the company performance. Need
I remind you that you negotiated this sale price at the worst possible time in
the company's history?
These actions are necessary in light of my belief that, to date, this
special committee has not performed its job in a capable manner. In your
recommendation of the Castle Harlan transaction, the proxy statement extols "the
fact that the Special Committee was able to negotiate the purchase price up to
$12.60 per share from an initial offer price of $12.00 per share." You attempt
to portray in your proxy statement that the special committee really worked hard
for that 2% increase. Yet, as soon as the special committee (reluctantly, I
believe) let Carl Icahn into the process to bid $13.50 per share, Castle Harlan
immediately matched Mr. Icahn's offer (a $0.90 increase above the value the
special committee worked so hard to secure with Castle Harlan). Further, Castle
Harlan matched Mr. Icahn's $15.00 offer just five business days after it was
deemed to be a "superior offer" and took less than two hours to match Mr.
Icahn's $16.00 offer. It certainly appears that Mr. Icahn's interest in
acquiring the company has done what the special committee was unable or
unwilling to do. According to your own proxy statement, it took the special
committee two months to negotiate a $0.60 per share increase in the per share
purchase price. Suddenly, thanks to Carl Icahn's interest in acquiring the
company, Castle Harlan has found an additional $3.40 per share, representing a
27% increase in their offer price. The shareholders are fortunate that Mr. Icahn
has the sophistication to see the true value of this opportunity and the company
and the resources and inclination to pursue this transaction and that Mr. Icahn
is not as easily intimidated by your actions as some of the other interested
parties appear to have been.
--------------------------------------------------------------------------------
50 East Sample Road, Suite 400, Pompano Beach, Florida 33064
Members of the Special Committee of
Morton's Restaurant Group, Inc.
July 11, 2002
Page 3
YOUR RECENT PUBLIC STATEMENTS REGARDING THE COMPANY'S POOR FINANCIAL
PERFORMANCE, YOUR WARNINGS ABOUT A POTENTIAL DELISTING OF THE COMPANY'S SHARES
AND YOUR EXPRESSIONS OF CONCERN REGARDING THE LIMITATION ON THE COMPANY'S GROWTH
DUE TO ITS FINANCING TERMS ARE TROUBLING TO ME, TO SAY THE LEAST. HOW CAN THESE
STATEMENTS BE JUSTIFIED IN THE FACE OF CASTLE HARLAN'S SUBSTANTIAL INCREASES IN
ITS OFFER PRICE? WE BELIEVE THAT THE SHAREHOLDERS DESERVE AN EXPLANATION OF THIS
INCONSISTENCY.
Despite the fortuitous recent increase in Castle Harlan's offer price, I
continue to believe it significantly undervalues the company. Considering the
improved restaurant operating environment and Morton's likely improved balance
sheet and cash flow, I AM SURE THE SHAREHOLDERS WOULD BENEFIT FROM SEEING THE
COMPANY'S MOST RECENT FINANCIAL RESULTS.
This is only my opinion, but perhaps if the special committee were focused
on doing its job properly instead of trying to do everything possible to
gift-wrap the company for Castle Harlan, the special committee would have been
more open to third-party bidders earlier in the process and negotiated a price
that reflects the true value of the company. Every increase by Castle Harlan
makes the special committee appear to be more and more foolish and simply a
puppet of John Castle and allowing Castle Harlan simply to match the economic
terms of the Icahn offers only makes this look worse. In my view, the rejection
of Carl Icahn's $17.00 offer is a breach of the special committee's fiduciary
duties to the shareholders.
Unfortunately, I do not believe that you will undertake any of these steps
on your own so, through our proxy solicitation process, we are encouraging the
company's other shareholders to (i) vote "NO" on any Castle Harlan offer
regardless of when the special meeting is held or at any price because we
believe that the process was rigged and tainted (although Mr. Icahn is now
interested in acquiring the company, it does not mean that there were no other
interested parties willing to pay more, given the opportunity), (ii) elect three
new directors at the company's upcoming annual meeting, (iii) demand the
reconstitution of the special committee and (iv) re-auction the company in a
fair and proper manner - the way it should have been done a year ago. I
sincerely hope that you will listen to these shareholders when they communicate
with you.
I am stunned at your apparent blatant disregard for the shareholders' best
interests given the recent number of well-publicized cases of directors being
held personally liable and accountable for breaching their duties and failing
shareholders and the current environment of the SEC regarding actions of chief
executives and financial officers and their crony boards. I look forward to your
response.
Sincerely,
/s/ Barry W. Florescue
Barry W. Florescue
Chairman and CEO
cc: The Board of Directors
of Morton's Restaurant Group, Inc.
--------------------------------------------------------------------------------
50 East Sample Road, Suite 400, Pompano Beach, Florida 33064