Boyd Gaming tells Fertittas, "Let's Make a Deal"

Feb 24, 2009 12:41 AM
by Ray Poirier |

In a surprise announcement Monday, Boyd Gaming Corp. told the Fertitta Brothers that their locals competition would be interested in acquiring Station Casinos Inc.

The preliminary offer was for $950 million.

Taking into consideration that Station Casinos, whose partnership includes Colony Capital LLC, has failed to pay current interest charges on the debt accumulated last year when the partners bought out the shareholders and took the company private, Boyd Gaming noted in its letter of interest that it has both the expertise and the capital (some $2 billion in a line of credit) to assimilate the 11 Station Casino properties into its Coast Casino operation.

Boyd also said it would be interested in pursuing a transaction either as a "stalking horse bidder" or as a co-sponsor in a consensual plan of reorganization.

There was no immediate response from the Station Casinos management.

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