Boston-based investors again bid to acquire Archon Corp.


Maybe Esplanade Capital believes the third time is the charm.

Probably not.

The Boston-based investment firm made another bid this week for to acquire Archon Corp., the casino company owned by Paul Lowden and former state senator and GOP lieutenant gubernatorial candidate Sue Lowden.

But the Lowdens, who control roughly 90 percent of Archon, are not interested in selling.

Esplanade Capital, which is based in Boston, offered $19.25 per share for Archon through a press release and letter to Sue Lowden, who serves as the company’s secretary.

In a statement, Esplanade Capital President Shawn Kravetz said the offer is a 61.6 percent premium based the company’s shares historical closing prices.

Last April, Esplanade offered $17.50 a share for Archon. Two months later, Esplanade offered $18.50 per share. The company claims to be the second-largest shareholder in Archon.

“Despite our repeated attempts to reach out to the company, the board of directors had refused to meet with us,” Kravetz wrote. “Notwithstanding your stonewalling, we remain extremely committed to pursuing a negotiated transaction to acquire all of the outstanding shares of the company.”

The only casino Archon currently owns is the Pioneer Club in Laughlin.

Paul Lowden, Archon’s chairman, declined comment on the offer this week. Last year, he said the family “has no intentions” of selling Archon and sources close to Lowden said that stance hasn’t changed.

The company was created in the past decade after Paul Lowden’s former company sold the now-closed Sahara to the late William Bennett and the Santa Fe in northwest Las Vegas to Station Casinos.

The 400-room, Western-themed Pioneer Club is one of Laughlin’s older casinos.

Archon also owns a 27-acre land parcel on the Strip next to the Sahara that once housed the Wet ‘n Wild theme park. The former Sahara is being converted into the SLS Las Vegas by SBE Entertainment.

Archon also owns office buildings in Maryland and suburban Boston.

Kravetz said a proposed arena project announced in December for the vacant Strip land and the sale of Maryland mall property were two developments that could boost the value of Archon.

Shares of Archon, which traded over-the-counter, closed unchanged Friday at $16.70 per share.

Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871. Follow @howardstutz on Twitter.

 

Rules for posting comments

Comments posted below are from readers. In no way do they represent the view of Stephens Media LLC or this newspaper. This is a public forum. Read our guidelines for posting. If you believe that a commenter has not followed these guidelines, please click the FLAG icon next to the comment.