Ivan's Blog |
|
Featuring Ivan Trembow's Self-Important, Random Rants on Mixed Martial Arts, Video Games, Pro Wrestling, Television, Politics, Sports, and High-Quality Wool Socks Ivan's Blog Main Page Archives September 2002 November 2002 February 2003 March 2003 April 2003 June 2003 October 2003 August 2004 October 2004 November 2004 April 2005 May 2005 June 2005 July 2005 August 2005 September 2005 October 2005 November 2005 December 2005 January 2006 April 2006 May 2006 June 2006 July 2006 August 2006 September 2006 October 2006 November 2006 December 2006 January 2007 February 2007 March 2007 April 2007 May 2007 June 2007 July 2007 October 2007 December 2007 January 2008 October 2008 November 2008 December 2008 January 2009 February 2009 April 2009 May 2009 June 2009 July 2009 August 2009 September 2009 October 2009 November 2009 December 2009 January 2010 February 2010 March 2010 April 2010 May 2010 June 2010 July 2010 August 2010 September 2010 |
Friday, December 08, 2006
Business/Mixed Martial Arts--- UFC Owners Place $4.7 Billion Bid to Buy Back Station Casinos by Ivan Trembow Originally Published on MMAWeekly Frank Fertitta III and Lorenzo Fertitta, the majority owners of the UFC, are attempting to take their multi-billion-dollar Station Casinos empire private with a $4.7 billion buyout offer. The newly-formed Fertitta Colony Partners LLC, which includes Frank Fertitta III, Lorenzo Fertitta, and Colony Acquisitions LLC, has made an all-cash offer of $4.7 billion to buy Station Casinos, which equals $82 per share for all of Station Casinos' current shareholders. Station Casinos, which has been publicly traded for 13 years, would be a privately owned company if the buy-out attempt is successful. In addition to being the majority owners of Zuffa, the company that owns the UFC, the Fertitta brothers hold senior management positions at the company that their family founded. Frank Fertitta III is the Chairman and CEO of Station Casinos, while Lorenzo Fertitta is the Vice Chairman and President of Station Casinos. In the first nine months of 2006, senior management at Station had already bought back nearly 13 million shares of Station Casinos stock for approximately $880 million. The Station Casinos empire includes the $500 million Green Valley Ranch, which opened in 2001 and is a joint venture with the Greenspun family; and the new Red Rock Casino Resort & Spa, which opened in April of this year and cost $925 million, according to Bloomberg News. Station Casinos also owns numerous other casinos and manages the Thunder Valley Native American Casino near Sacramento, California. As Bloomberg News noted (albeit with some "no holds barred" hyperbole), "The Fertitta brothers also own the Ultimate Fighting Championships, a no-holds-barred martial arts competition." The brothers can usually be seen near the Octagon during UFC fights and in the Octagon after main event fights, and they were also both sitting in the front row at Pride's United States debut show on October 21st. As reported by Bloomberg, "Taking the company private means the Fertittas avoid investor questions about their management decisions as they build in the fast-growing Las Vegas market." Chuck Akre, the CEO of Akre Capital Management, said that the buy-out offer would give the Fertittas "greater economic gain and less public scrutiny." Financial analysts have indicated that even more valuable than the company's current casino properties is the land that the company is currently holding for development, which is worth $997 million to $1.4 billion, according to the company's own estimates. In an interview with Business Week, financial analyst Jeffrey B. Logsdon said that he believes the $4.7 billion bid for complete ownership of Station Casinos is a fair price. Logsdon said, "Although a bid for Station could go higher, minority shareholders would have to make a convincing argument that the company's land holdings value is higher than management's estimates." A Forbes.com article on the $82 per share buy-out offer stated, "Analysts predicted that the deal would quickly be consummated and that the company, while recently experiencing some difficulties, will ultimately profit from a healthy Sin City economy." According to the Associated Press, Susquehanna Financial Group analyst Robert LaFleur "sees the strong insider position of the Fertittas as decreasing the odds of an outside offer [to buy Station]... while he thinks shareholders could apply pressure for higher bids, LaFleur doesn't see it going beyond the $84 to $86 per share range." Though the buy-out is expected to be completed at some point, three lawsuits stemming from the proposed buy-out have been filed in Clark County District Court, according to In Business Las Vegas. Station Casinos shareholders Walter and Rita Goldmann, Helen Roessler, and Charles Traynor are suing Station, Fertitta Colony Partners, Frank Fertitta III, Lorenzo Fertitta, and several Station board members for breach of fiduciary duty. These shareholders are seeking to form a class-action suit and have alleged that the proposed purchase price of $4.7 billion for Station Casinos is "unfair and grossly inadequate because, among other things, the intrinsic value of Station Casinos common stock is materially in excess of the amount offered, given the company's growth and anticipated operating results, net asset value and future profitability." Labels: Mixed Martial Arts (MMA), UFC News, Ultimate Fighting Championship (UFC) Send your feedback, questions, or hate mail to ivan@ivansblog.com If you're looking for all of the content from my other site, Master Gamer, you can find it here. |