HOLLYWOOD Fla. Hard Rock International Inc. said Wednesday that the allegations of collusion surrounding the company’s pending $965 million acquisition by the Seminole Tribe of Florida from owner The Rank Group PLC “have absolutely no merit.”
The Cordish Co., a lodging and mixed-use-site developer, along with its affiliate Power Plant Entertainment LLC, announced Tuesday a lawsuit against Hard Rock, its management and the Seminole Tribe, alleging it was shut out of the bidding process for the operator and franchisor of 124 Hard Rock Cafes and additional Hard Rock-branded hotels and casinos.
Hard Rock said it would “defend the lawsuit vigorously” and seek “appropriate legal remedies” against the plaintiffs.
In its suit, Cordish said it would have topped the Seminole Tribe’s bid for Hard Rock if it had been afforded an opportunity to pose an offer. In a statement earlier this week, Cordish asserted that its representatives were twice rebuffed by the seller’s advisor, Merrill Lynch & Co., under orders from Hard Rock’s senior management.
The lawsuit specifically accuses Hard Rock USA president and chief executive Hamish Dodds of rigging the bidding in exchange for a promise from the Seminole Tribe that Hard Rock’s management would be retained.
The auction process “was conducted in an open and fair manner,” Hard Rock said in a statement. Rank Group shareholders are expected to vote on the pending acquisition on Jan. 8.