NY firms may help with Tropicana sale
ATLANTIC CITY, N.J. (AP) - January 11, 2008 Retired state Supreme Court Justice Gary Stein said Friday he
has chosen investment bankers Bear Sterns, and the law firm of
Debevoise & Plimpton to help him find a buyer for the Tropicana,
analyze offers, and to close the deal hopefully by the end of
April.
The state Casino Control Commission is expected to approve his
request at its meeting next Wednesday.
The commission voted not to renew the Tropicana's license and
found that its owners, Kentucky-based Columbia Sussex Corp., were
incapable of running the type of first-class casino hotel required
under new Jersey law.
That decision triggered the activation of a trust and the
appointment of Stein as a conservator. In that position, he is
charged with keeping the casino open and operating while finding a
qualified buyer for it.
"I interviewed a number of investment bankers and attorneys who
specialize in merger and acquisition work," Stein said. "I feel
that this team will enable me to develop a fair process, find a
suitable buyer and obtain the best price for the Tropicana."
Analysts expect the casino to be sold for about $1 billion.
The move comes as about two dozen prospective buyers have
expressed interest in the Tropicana, which includes New Jersey's
largest hotel at 2,129 rooms.
The Bear Stearns team will be headed by Kenneth Shea, the senior
managing director in charge of Bear Stearns' gambling-industry
investment banking, and Charles Edelman, the global head of Bear
Stearns' mergers and acquisitions.
Stein said both men have more than 10 years of experience
providing investment banking services to the gambling industry.
He chose Bear Sterns from among a dozen different investment
banking firms.
The Debevoise legal team will be lead by Michael Blair, the
chair of Debevoise's corporate department.
By law, Stein has at least 120 days to find a suitable buyer for
the Tropicana, but the commission can extend that deadline for good
cause. Commission chairwoman Linda Kassekert said extra time would
be granted if it is needed.
"While we are interested in resolving this situation
expeditiously, the commission is not interested in forcing a fire
sale of this property," she said.