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Harrah's Selling Rio, Again

By Chuckmonster on Friday, 23rd April 2010 4:10pm
  » filed under Mergers & Acquisitions  comments: 1


If you believe rumors, the Rio had been bought and sold more often than any other Las Vegas casino, with Mirage gaining ground.

Today, Business Week has offered to tend to the perpetually burning Rio Sale Rumor Bush via two "people with knowledge of the situation."

Harrah's Entertainment Inc., the casino company owned by Apollo Management LP and TPG Inc., is seeking bids for the Rio All-Suite Hotel & Casino in Las Vegas, people with knowledge of the situation said.

Starwood Capital Group LLC and Colony Capital LLC are among the companies that are weighing bids for the resort, said the people, who declined to be identified because the talks are private. Some bids value the Rio at about $500 million, two of the people said.

Hrm. $500M for the Rio? TI went for $775. On further ends of the spectrum, The New Frontier sold for $1.2B which then got wrecked, the wreck that is Fontainebleau sold for $156M and it will take another $1B to finish it.

With the epic piles of financial trouble that Colony Capital is having elsewhere, I'm guessing the addition of their name in the mix is a smokescreen put up by Harrah's informants who might be trying to leak their way into a bidding war with someone else. Starwood was looking at the Riviera barely a month ago, so they're obviously shopping. Is $500M turn key market entrance low enough to get those stingewads at Penn National to stop playing footsie with their checkbook?

Or is this just another waft of stinky, hot air.

Tagged: rio   harrah's   mergers and acquisitions   rumors   


Comments & Discussion:

I'm guessing they will get a few offer around $350M and we will have to see if Harrah's thinks that is enough.

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