In making the decision, the company says it took into account "the uncertainty that would be faced by any potential buyer in attempting to complete a potential transaction, the deterioration in the credit markets; the potential costs of terminating the company's swap agreement due to the unpredictable drop in interest rates; the ability to obtain shareholder and regulatory approval of a transaction; the possibility of increased competition from slot machines at Colorado racetracks; and, the impact of weak economic conditions on the company's business."

One of the bidders was Riv Acquisition Holdings and its affiliates, who previously submitted a $34-per-share offer. Despite the termination of the formal strategic review, Riviera says it continues to have discussions with the Riv Acquisition Holdings group.

"While the company's strategic review process did not result in entering into a transaction to sell the entire company at the present time, the company has and will continue to review all opportunities and consider all proposals that it receives, as well as other possible ways in which the company can maximize shareholder value," Riviera Holdings states in its latest earnings report.