FTC review approves Aladdin deal

August 18

The purchase of the Aladdin hotel and casino on the Las Vegas strip in Nevada by a group headed by one of Planet Hollywood's founders Robert Earl has completed yet another regulatory obstacle.

A spokesman for the Federal Trade Commission said Tuesday that the would be purchase of Aladdin Gaming LLC by BH/RE LLC, an Earl subsidiary, sent up no antitrust red flags for the FTC or the U.S. Department of Justice. The spokesman said that all of the transactions over the amount of $50 million get an initial up close look into possible antitrust issues and if the deal shows any signs of a purposed negative effect on the market, an investigation is begun.

The spokesman also stated that the transaction was granted an early termination, this means it will not undergo any further antitrust reviews Noting that the case file is not public, the spokesperson would not comment on whether or not there are any actions against the purchase were filed with the Federal Trade Commission of the Department of Justice.

BH/RE LLC is a Nevada corporation controlled by Earl and Bay Harbour Management LLC managing principal Douglas Teitelbaum. The management group that will run the would be Planet Hollywood resort includes Earl, Starwood Hotels and Resorts Worldwide Inc., and Bay Harbour.

Also, Planet Hollywood officials confirmed their earlier estimate that approximately twenty managers are being let go as part of the transition to a Planet Hollywood resort.

However, sources state that the amount of managers being let go was greater than the number Planet Hollywood disclosed and that the property's marketing and public relations departments were among those to be fired.

Amy Sadowsky , a spokesperson for Planet Hollywood did state that the company is not disclosing the details of which employees and departments are being let go as part of the transition.

Clearly, it is said that changes in this manner are typical and necessary at times.

The Gaming Control Board last week recommended approval for the group taking over the Aladdin after vigorously questioning Earl in regards many concerns with his application as well as concerns about Planet Hollywood's prior financial woes. The group will be up against one more hearing in front of the Nevada Gaming Commission on Thursday August 26th.