Offer to buy Riviera rejected by board

August 23

The board of directors of Riviera Holdings Corp. states that they are dismissing a bid from a shareholder to purchase the company that owns the property on the Strip in Las Vegas. The property contains 2,100 hotel rooms.

Company officials released a statement today saying that a bid by D.E. Shaw Laminar Portfolios LLC, New York did not state how it would address regulatory issues in Missouri. Missouri is where the Riviera is a bidder in plans to build a hotel/casino in Jefferson County.

The company's board of directors held a meeting over the weekend. Citing SEC regulations, a company executive stated that he could not detail any further on their analysis  of the bid.

It is said that the board would re-evaluate any changed or additional offer Laminar might make. It is not said yet whether Laminar would even do so.

In a SEC filing Friday, Laminar said that they are willing to pay $12 a share for the company. Riviera also operates the well known Riviera Black hawk Colorado that openned its doors back in early 2000.

Laminar already owns 9.7% of the company shares. This makes them the second largest investor behind Riviera Chief Exec. William Westerman. Westerman owns approximately 18% of the company.

Laminar is said to be the third company to come out publicly and bid for the company in recent months.

Past Riviera shareholders include Donald Trump.

The Riviera has stated that their occupancy rate was a steady 98% full from 1994-2000. Even during the post 9/11 they state that they had an occupancy of about 92% compared to Las Vegas' average 86% during the same time.