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Tropicana Bidding War! Colony Capital Makes Play for Control of Tropicana

By Chuckmonster on Thursday, 30th March 2006 7:03pm
  » filed under Las Vegas  comments: 0

   

Colony Capital LLC made a $41 a share bid for Tropicana casino operator Aztar Corp., topping an earlier offer by Pinnacle Entertainment Corp.

Colony, owner of the Raffles hotel group and the Las Vegas and Atlantic City Hilton hotel-casinos, made the bid today in a letter to Aztar's board, Colony spokesman Alan Marcus said in an interview. On March 13, Pinnacle offered $38 a share, or $1.45 billion, and agreed to assume $723 million in debt.

The deal will expand Colony's collection of hotels and give it access to one of the last undeveloped sites on the Las Vegas strip. Aztar owns the Tropicana, which sits on a 34-acre parcel that Pinnacle Chief Executive Officer Daniel Lee said last month is "really the last great site'' in the gaming town.

"It potentially makes a lot of sense because if you look at Aztar's assets in Las Vegas, you have an unparalleled location,'' said Michael Pollock, a casino analyst with the Spectrum Group in Atlantic City, New Jersey. "There aren't many of those sites in gaming.''



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