Riviera Holdings Holds Shareholder Vote
Riviera Holdings Corp. said Wednesday it will conduct a shareholder vote next week on a $426.5 million buyout offer from a privately held investment group after the company's board of directors said it did not have enough information to determine if an 11th-hour competing offer was credible. The vote, in which
""It was a bizarre offer. There wasn't a lot of substance behind it," Butera said. "We're ready to go forward with the vote. We're still firm in our position that we are the only credible bidder out there for
"The shareholder vote was rescheduled for 1 p.m. Tuesday.
"Approval of the buyout by Riv Acquisition is not a foregone conclusion, however. Several of the company's largest shareholders have said they will vote against the buyout, saying the $17 per share price is too low.
"Some investors thought the 26 acres of Strip property that houses the
"Asset management firm D.E. Shaw, which controls 1.2 million shares; and Triple Five Investco, a subsidiary of Canadian mall developer Triple Five Group, which owns 1 million shares; have said they would vote against the deal.
"Riv Acquisition already holds more than 2.1 million shares of
"Riviera Holdings needs approval from 60 percent of its outstanding shareholders for the deal to be approved. If a shareholder doesn't participate, that will have the same effect as if he voted against the buyout.
"Westerman has actively lobbied shareholders to support the transaction, even during the company's quarterly conference.
"In Wednesday's statement,
"Riviera Holdings made the announcement after trading closed Wednesday on the American Stock Exchange. Shares in the company fell 28 cents, or 1.38 percent, to close at $20.