Trump Entertainment Buyout Fizzles; Shares Plunge
Casino operator Trump Entertainment Resorts said Monday it did not reach a deal with potential acquirers and has ended discussions to sell itself, sending its shares down 14%.
Trump Entertainment , which runs three casinos in Atlantic City, New Jersey, and emerged from bankruptcy about two years ago, said none of the indications of interest was likely to lead to a transaction that was in the best interests of the company and its shareholders.
Trump Entertainment, which in March said it hired Merrill Lynch to help it consider its options, said it will continue to review other strategic alternatives.
Failure by Donald Trump's casino company to reach a deal comes amid a generally buoyant market for casino assets.
Last month, a group led by U.S. hedge and private equity firm Fortress Investment agreed to pay $6.1 billion for casino and racetrack operator Penn National Gaming .
Harrah's Entertainment , the world's largest casino operator, is in the process of being acquired by private equity firms for $17 billion, while Las Vegas operator Station Casinos Inc. is in midst of a $5.4 billion management-led buyout.
Atlantic City has been struggling for years to transform itself from an attraction for day trippers from New York and Philadelphia to a Las Vegas-style destination.
The seaside gambling resort has faced further challenges from new gaming venues in nearby Pennsylvania as well as from a partial smoking ban.