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New Bid Takes Riviera Back to Square One

LAS VEGAS-The casino resort owner retains a financial advisor to analyze a new offer while a lawsuit proceeds regard to an old offer.

By Brian K. Miller | Updated on May 14, 2007

LAS VEGAS-Locally based casino-resort owner Riviera Holdings Corp. on Friday said that it has received a $30 per-share offer for the company from a group led by Ian Bruce Eichner and Dune Capital Management LP. Riviera has retained a financial advisor to review the offer.

What’s unclear is whether Riviera will consider a revised offer by Riv Acquisition Holdings, a dissident shareholder group with a substantial stake in the company that in late March had its $27 per-share offer dismissed by the board on a technicality. Riv Acquisitions consists of Paul Kanavos and Robert Sillerman, the managing members of New York City-based Flag Luxury Properties LLC; Las Vegas developer Brett Torino; and Starwood Capital Group chairman and CEO Barry Sternlicht.

Riviera’s rebuke of Riv’s bid prompted Riv to file a lawsuit in Clark County District Court challenging the legality of the board’s decision. It also prompted Riv to attempt to replace the board by offering up its own slate of candidates for a vote at Riviera’s annual meeting tomorrow (Tuesday, May 15). However, in light of the higher offer, Riv has cancelled its effort to replace the board with hope that the Riviera Board, in the interest of maximizing shareholder value, will decide to allow Riv to try to outbid the new high bidder despite the technicality. Riviera has not yet made any new statements in that regard.

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