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Boyd Gaming Still Pursuing Station's Casinos
LAS VEGAS, NEVADA --
Back in February, when Station Casinos missed a debt payment and began trying to negotiate a pre-packaged bankruptcy with bondholders, Boyd Gaming made the gambling company an offer of $950 million to purchase whichever casinos were not involved in the loans as security. The offer was firmly rejected, but now that Station has filed for Chapter 11 bankruptcy last week, Boyd officials are again targeting the Las Vegas casinos.
The two companies comprise much of the market for locals and daytrippers in Vegas, giving customers a less expensive alternative to the skyrocketing prices on the Strip. Boyd executives saw Station's stumble, caused by loans taken out to bring the company private just before the recession, as its opportunity to dominate that lower-end of the Las Vegas casino industry.
But Station officials basically told Boyd don't call us, we'll call you, as they determined the last thing they wanted was to sell their hard-built empire to Boyd for dimes on the dollar.
Boyd CEO Kevin Smith told listeners on an earnings call that Boyd is committed to pursuing any acquisitions which become available in the Station fallout.
"As the bankruptcy process continues, and the creditors consider their options, they know Boyd Gaming remains serious and committed in being an active participant," Smith said in a speech clearly intended for the ears of Station creditors. "They also know we have the ability and financial resources to swiftly execute a transaction, and we have more than 35 years in the Las Vegas market."
A spokesman for Station Casinos said the company has no intent to sell any of its assets, none of which are directly involved in the bankruptcy, as only the parent company has declared.
But gaming analysts noted that Boyd may be addressing bondholders rather than the equity holders, seeking to turn up pressure on the company to make a deal. As Smith says, "Bankruptcy can be a lengthy and complex process."
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Recent Comments
| Posted by jerry on 08/10/2009 05:00:50 AM EST |
boyd gaming should not have
stations assets we should
let an outside company aquire them because boyd gaming already has enough
propertys and these casinos
should be unionized. |
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