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Boyd makes market clearing offer for Stations

#1

Want to make a bet?

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--- On Thu, 12/17/09, Steve M <sdmestayer@earthlink.net> wrote:

From: Steve M <sdmestayer@earthlink.net>
Subject: [vpFREE] Re: Boyd makes market clearing offer for Stations
To: vpFREE@yahoogroups.com
Date: Thursday, December 17, 2009, 7:28 AM

      Just because they make the offer does not mean that the Justice Department

will allow the transaction to go through. Boyd has a very large market

concentration and the Obama admininstration may not be willing to let them

buy up Stations.

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#2

Antitrust issues might be a problem. Stations has 18 casinos (all included in Boyd's offer) and Boyd has 13 casinos plus a 50% interest in the Borgota in AC. Seven of the 13 are in LV. So, if the deal goes through, Boyds would have 25 LV casinos, mostly for locals. With the exception of M, Arizona Charleys, and the Rampart, isn't that every major locals casino?

But there may be another problem with Boyds offer. The paper said "Boyd is offering 2.45B in cash and assumed debt". What is meant by "assumed debt"? I think it means Boyd will assume all of Stations debt (roughly 5.675B). The paper also said 2B of that debt is already owed to Boyds and the rest, 3.675B, to various other creditors. Assuming the 2.45B in cash is paid to the other creditors. does that mean the other creditors end up losing the 1.225B owed them?

If so, I think Boyds offer will be rejected. Wouldn't the other creditors prefer to take control of Stations and hire new management? This assumes the other creditors can pass muster with the Gaming Commission.

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On the other hand ... if it means Boyds (instead of Stations) would now owe 1.225B to the other creditors then it seems likely the deal will go through. I can't see the creditors complaining about getting 65% of their loan back immediately. The 2B Stations owes to Boyds (an asset) would never be repaid ... it would be replaced by equity in 18 more casinos (a different kind of asset). --- In vpFREE@yahoogroups.com, george lee <glee4ever@...> wrote:

Want to make a bet? Â
--- On Thu, 12/17/09, Steve M <sdmestayer@...> wrote:

#3

Antitrust issues might be a problem. Stations has 18 casinos (all included in Boyd's offer) and Boyd has 13 casinos plus a 50% interest in the Borgota in AC. Seven of the 13 are in LV. So, if the deal goes through, Boyds would have 25 LV casinos, mostly for locals. With the exception of M, Arizona Charleys, and the Rampart, isn't that every major locals casino?

But there may be another problem with Boyds offer. The paper said "Boyd is offering 2.45B in cash and assumed debt". What is meant by "assumed debt"? I think it means Boyd will assume all of Stations debt (roughly 5.675B). The paper also said 2B of that debt is already owed to Boyds and the rest, 3.675B, to various other creditors. Assuming the 2.45B in cash is paid to the other creditors. does that mean the other creditors end up losing the 1.225B owed them?

Dosesn't "2.45B in cash and assumed debt" mean that the total of the
cash and assumed debt is 2.45B?

#4

There are about 740 casinos in the US, 175 in Nevada. 31 casinos comes nowhere near a national monopoly. 31 of 175 is not going to cause Nevada a problem and Justice does not delve into state issues.

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--- On Mon, 12/21/09, brucem <brumar_lv@yahoo.com> wrote:

From: brucem <brumar_lv@yahoo.com>
Subject: [vpFREE] Re: Boyd makes market clearing offer for Stations
To: vpFREE@yahoogroups.com
Date: Monday, December 21, 2009, 12:45 AM

Antitrust issues might be a problem. Stations has 18 casinos (all included in Boyd's offer) and Boyd has 13 casinos plus a 50% interest in the Borgota in AC. Seven of the 13 are in LV. So, if the deal goes through, Boyds would have 25 LV casinos, mostly for locals. With the exception of M, Arizona Charleys, and the Rampart, isn't that every major locals casino?

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#5

You are correct in terms of federal antitrust law. But what about the Nevada Gaming Commission? Might they view this as a "locals" monopoly, and deny the merger on that basis?

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--- In vpFREE@yahoogroups.com, NC Wanderer <larbo929@...> wrote:

There are about 740 casinos in the US, 175 in Nevada. 31 casinos comes nowhere near a national monopoly. 31 of 175 is not going to cause Nevada a problem and Justice does not delve into state issues.

#6

The Gaming Commission does not deal in antitrust matters. In any case, there are so many casinos in Nevada and the Las Vegas area that it could not be construed as a monopoly.

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--- On Mon, 12/21/09, brucem <brumar_lv@yahoo.com> wrote:

From: brucem <brumar_lv@yahoo.com>
Subject: [vpFREE] Re: Boyd makes market clearing offer for Stations
To: vpFREE@yahoogroups.com
Date: Monday, December 21, 2009, 5:04 PM

You are correct in terms of federal antitrust law. But what about the Nevada Gaming Commission? Might they view this as a "locals" monopoly, and deny the merger on that basis?

--- In vpFREE@yahoogroups. com, NC Wanderer <larbo929@.. .> wrote:

There are about 740 casinos in the US, 175 in Nevada. 31 casinos comes nowhere near a national monopoly. 31 of 175 is not going to cause Nevada a problem and Justice does not delve into state issues.

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