Billionaire Carl Icahn makes move on Fontainebleau

Dec 1, 2009 3:53 AM

Billionaire Carl Icahn and his associates displaced Penn National Gaming Inc. (PENN) as the primary bidder for the bankrupt Fontainebleau resort on the Las Vegas Strip.

Called Icahn Nevada Gaming Acquisition, the group became the "stalking horse" bidder with a bid of $152 million. This consisted of $51 million to cover several costs, including asset maintenance, and a cash payment of $105 million.

Penn National notified the SEC that it no longer was the "stalking horse" since its bid of $102 million was no longer the highest received by the bankruptcy court. It did not indicate whether it planned to offer a higher bid.

The property will be auctioned on Jan. 21. This will be followed by a court hearing on Jan. 27 and a closing on Feb. 9.