Vol. 3, No. 9, September 2006
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New bid for Riv
A last-minute bid from International Gaming and Entertainment forced a delay of a vote on selling the Riviera in Las Vegas.
Riviera Holdings Corp. shareholders were planning a vote last week on a $426.5 million offer from Riv Acquisition Holdings when the competing investment group made a higher offer. Riv Acquisition was offering $17 a share, while International Gaming and Entertainment is offering $20 a share.
Riviera management said it needs time to determine if the new bid is credible. Riviera Holdings needs to ascertain whether the new bid would be superior to the agreement signed in April with Riv Acquisition Holdings.
That deal has been called into question by several large Riviera shareholders, who planned to reject the offer because they believed there was more value in the company than the agreed-upon price. Several gaming analysts thought the dissident shareholders had enough votes to turn down the offer.
Riv Acquisition President Scott Butera said the investment group wasn't dismayed by the new proposal. He said the merger agreement with Riviera Holdings contains a termination agreement in which they would be paid a fee if the deal collapses. He also said it is too soon to decide whether Riv Acquisition will make a counter-offer if the new proposal is approved.
