Thursday, January 30, 2003
Copyright © Las Vegas Review-Journal
Riviera stake makes Trump apply himself
Developer says he'd be honored to have license in Nevada
By JEFF SIMPSON
GAMING WIRE
Donald Trump's 358,000 shares of Riviera parent Riviera Holdings Corp. put him over a threshold subjecting investors to investigation and licensure by Nevada gaming regulators.
Photo by Christine H. Wetzel.
Donald Trump
Says he'll be honored to acquire gaming license in Nevada
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The Donald just wants to make the dollar.
At least that's what developer Donald Trump says about his $1.7 million stake in the Riviera's parent company.
"I took the position merely as an investment," Trump said Wednesday. "I have a lot of confidence in (Riviera) management."
Trump declined to say if his recent purchase of about 8,000 shares in Riviera Holdings Corp. shares was intended to put his stake over the 10 percent threshold that subjects investors to investigation and licensure by gaming regulators.
Trump's 358,000 shares do put him over the threshold, meaning the New York and Atlantic City developer will be required to submit an application for a Nevada gaming license.
A state gaming license would smooth any possible future Trump attempt to develop or purchase Nevada casino resorts, allowing Trump to make a deal without the long wait that accompanies first-time license applications.
Riviera shares closed unchanged at $4.66 in Wednesday trading on the American Stock Exchange. Riviera Holdings' market capitalization of $16.3 million and its debt of about $225 million give the company an approximate enterprise value of $241.3 million.
Trump did say that he's pleased his stake in Riviera Holdings, which also operates a limited-stakes casino in Black Hawk, Colo., as well as its flagship Strip property, would require him to apply for the license.
"I have great respect for Nevada," Trump said. "It will be an honor to be licensed in Nevada."
Riviera Chief Financial Officer Duane Krohn said that Trump's interest in the company doesn't mean the Gotham magnate plans on taking over the Riviera.
"Everything is for sale at the right price," Krohn said, noting that several interested parties have recently inquired about Riviera's availability. He declined to identify the prospective buyers.
Krohn noted that Riviera's north Strip site is poised to benefit from nearby redevelopment, including the $2 billion Le Reve megaresort and the $1 billion Fashion Show mall expansion.
Nevada Gaming Control Board Chairman Dennis Neilander said he expects Trump to soon receive a letter from his agency requiring a license application.
"Donald Trump's over 10 percent in Riviera so we expect him to file an application," Neilander said, adding that Trump would have 30 days to file, and that the ensuing investigation would likely take about one year.
Trump and New Frontier owner Phil Ruffin last spring announced plans to build Trump Tower Las Vegas, a $390 million, 60-story condominium on Ruffin's site just off the Strip near Fashion Show mall. The duo hopes to begin preconstruction sales this summer.
