Investor Group Raises Offer for Riviera Holdings to $34 a Share

By: Associated Press
By: Associated Press

Investor group Riv Acquisition Holdings Inc. on Wednesday raised its buyout offer for the owner of the 52-year-old Riviera casino-hotel on the Las Vegas Strip, to $34 per share, or $424 million.

On Friday a group led by real estate developer Ian Bruce Eichner and Dune Capital Management LP bid $30 per share for Riviera Holdings Inc., topping a previous $27-per-share offer from the Riv Acquisition group.

Riv Acquisition consists of Paul Kanavos and Robert Sillerman, managing members of Flag Luxury Properties LLC, developer Brett
Torino and Starwood Capital Group Chairman and Chief Executive Barry Sternlicht.

"We would expect the board to take the proposal very seriously and cease raising technical obstacles that we believe do not apply," Kanavos said in a statement on behalf of the group.

Riviera's board has said that because Riv Acquisition attempted to lock up certain major shareholders, it broke state antitrust laws and is prohibited from bidding again for three years. The issue is now before the courts.

In a letter to Riviera's board sent Wednesday, the group led by Riv Acquisition requested a response by Thursday.

Shares of Riviera Holdings, which also owns the Black Hawk casino near Denver, surged $3.37, or 10.2 percent, to close at $36.42 on Wednesday.

(Copyright 2007 by The Associated Press. All Rights Reserved.)

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