Casino news from http://today.reuters.com/
Casino operator Riviera Holdings Corp. (RIV.A: Quote, Profile, Research) on Tuesday said International Gaming & Entertainment had offered to buy it for $20 a share, or about $248.6 million, competing with an earlier offer from Riv Acquisition Holdings Inc.
International Gaming is a newly formed acquisition company affiliated with BT Enterprises, LLC, a Boston-based merchant equity fund, Riviera said.
The offer is at a slight premium over Riviera's closing price of $19.72 on the American Stock Exchange on Monday.
Riviera already has a merger agreement with Riv Acquisition, which agreed to buy the casino operator in April for $17 per share, or about $211.5 million.
That deal has been opposed by two shareholders in the company, with one of them saying that the offer undervalues the land that Riviera owns in Las Vegas.
Riviera, which owns a casino on the Las Vegas Strip and another in Colorado, said it had postponed a shareholders' vote on its merger agreement that was set for Tuesday to Aug. 29.
The value of land in Las Vegas has increased after casino operator Aztar Corp. (AZR.N: Quote, Profile, Research) agreed to go private earlier this year in a deal that could value its holdings in the U.S. gambling mecca at more than $30 million per acre, according to analysts.
Riviera said the terms of the new offer, which it received on Friday, were substantially the same as its agreement with Riv Holdings
Riv Holdings has agreed to also take over or assume $215 million of Riviera debt.
Riviera said its board of directors will consider all aspects of the new proposal and compare it with its agreement with Riv Holdings.
The principals of International Gaming include Jeffrey Wu, majority shareholder of United International Bank in New York.
Riv Acquisition includes Starwood Capital Group Chief Executive Barry Sternlicht, Las Vegas real estate developer Brett Torino, Chicago developer Neil Bluhm and Flag Luxury Properties LLC Chief Executive Paul C. Kanavos.
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