A Small Arb Play - Morgan Hotel Group

I picked up small position (~2% of portfolio) in Morgan Hotel Group (Ticker: MHGC) today at $2.10. The hotel chain is being acquired by SBE for $2.25 per share in cash. The company is guiding for a Q3 / Q4 close. Based on that guidance, I would model a close by October (hopefully sooner!). My potential gain would be + 7.14% over a 6 month period (~14.95% annualized return). There is a good possibility that this deal can close sooner than October. The nice arb spread maybe attributed to its small market cap, which is avoided by most of the large arb funds.