Jacobs Entertainment makes move on MTR Gaming

Oct 7, 2013 10:28 AM

Jeffrey Jacobs, a major stockholder in MTR Gaming Group Inc., is trying to outbid Nevada’s Eldorado Resorts in taking over the West Virginia gaming company. He says his bid of $5.69 per share is worth $15.6 million more than the $5.15 per share offered by Reno’s Carano family.

This is Jacobs’ second attempt to move in on MTR Gaming. He previously offered to merge his Jacobs Entertainment with MTR. The offer was never acted on by MTR directors. Jacobs, who at one time was associated with a Las Vegas gaming company, is related to the Cleveland, Ohio, family that is very involved in area development.

He argued in a filing with the Securities & Exchange Commission that MTR’s board wouldn’t be selling control of the company and could still appoint the majority of the board of directors.

Records indicate that Jacobs owns 5 million shares of MNTG, or about 18 percent of the company’s outstanding stock, according to an AP report by Vicki Smith.

Eldorado’s offer has been on the table for the past couple of weeks and the company did not comment on the Jacobs offer. Eldorado operates three casinos, the Eldorado Reno and Silver Legacy, both in Reno, and the Eldorado Shreveport in Louisiana.

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