Group may buy Riviera

Jan 3, 2006 2:53 AM

Shares of Riviera Holding Corp. skyrocketed in morning trading last Wednesday after a group of investors, including Flag Luxury Riv LLC, Rivacq LLC and High Desert Gaming LLC, disclosed a joint bidding agreement to possibly acquire the Las Vegas casino property.

In a document filed with the Securities and Exchange Commission, the companies said they entered an agreement on Dec. 22 to buy one million shares of common stock from Riviera Chairman William Westerman, and a trust affiliated with Westerman, priced at $15 per share, between Jan. 3 and Jan. 10.

The buyers agreed to make a second stock purchase of 650,000 shares, also priced at $15, a 4 percent premium over Tuesday’s closing price of $14.43.

In November, Riviera said it completed a strategic review and would weigh its options.