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Aztar shareholders OK casino takeover
Message was posted: 01:54 Oct 18th, 2006

User: rainman Rank: Casino Gold: 2516CG Contributor rating: 5280 Status: Offline

Casino news from http://news.enquirer.com/ Aztar Corp. shareholders on Tuesday approved a nearly $2.8 billion offer by Fort Mitchell-based Columbia Sussex to acquire the Phoenix-based casino operator. Under terms of the deal, shareholders would collect $54 in cash per share, while Columbia Sussex would be transformed into one of the largest privately held casino companies in the U.S. - a $2 billion behemoth - that would include Aztar's Tropicana Resort and Casinos locations in Las Vegas and Atlantic City, N.J. The deal would swell the number of the company's casinos to a dozen. Columbia Sussex is still awaiting regulatory approval in several states before closing the deal. Aztar said the deal is anticipated to close by the end of the year. Aztar officials did not disclose the tally of votes but said it would be released in the company's next quarterly report. As part of the deal, Columbia Sussex would pay shareholders extra if the acquisition doesn't close by Nov. 19. For each extra day after, the company will pay almost an extra penny per share for common stock and more than 9 cents per share for preferred stock. If the closing day lags, that clause could add $4.2 million to the acquisition price each day. Officials with Columbia Sussex did not return calls seeking comment Tuesday. William Yung III, Columbia Sussex's owner and chief executive, has indicated that once the deal closes he plans to radically expand the Tropicana in Las Vegas from a 1,900-room hotel to 7,000 or more rooms. He has said the company would continue to run three other casinos from the Aztar deal - the Tropicana in Atlantic City; the Ramada Express in Laughlin, Nev.; and Casino Aztar riverboat operation in Evansville, Ind. - but would sell the Casino Aztar riverboat operation in Caruthersville, Mo.