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New York Plaza Hotel Buyers Ashkenazy, Alwaleed Sue Owner

  • Investors say majority owner is trying to renege on deal
  • Parties claim right of first refusal on $600 million purchase
Pedestrians walk near the Plaza Hotel in New York.

Pedestrians walk near the Plaza Hotel in New York.

Photographer: Michael Nagle/Bloomberg
Updated on

Ashkenazy Acquisition Corp. and Saudi Prince Alwaleed bin Talal’s Kingdom Holding Co., the investors trying to buy New York’s historic Plaza Hotel, sued the property’s majority owner for allegedly reneging on an agreement that gives the group the right to match another offer.

Sahara US Corp., which owns a 70 percent stake in the hotel, demanded a second deposit and has been negotiating with other parties, according to a complaint filed in New York state court Friday. Minority investors Ashkenazy and Kingdom earlier this month exercised their right of first refusal on a $600 million bid for the property to instead try to purchase it on their own.