Trump May Sell Three Casinos in New Jersey
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Donald J. Trump, the real estate developer who has a sizable stake in three Atlantic City, N.J., casinos, says he may cash in his chips on the gambling houses--for the right price.
Trump on Friday confirmed that two investment banks have been hired to seek bids for Trump Hotels & Casino Resorts Inc., the public company that controls his casino holdings. Trump owns nearly 40% of the company’s stock.
“The company is doing very well, and I think we can get a good price,” Trump said.
Analysts also said Trump faces the prospect of fierce competition from industry giants who are planning mega-resorts in Atlantic City if he keeps his properties there.
Trump Hotels stock surged $1.75--or 18.8%--to close at $11.06 a share on the New York Stock Exchange. With about 39.7 million shares outstanding, that would value the company at about $440 million. It went public in March 1995 at $14 a share.
Trump has been a major player in Atlantic City since the mid-1980s, and his three casinos there account for nearly 30% of the winnings of the city’s 12 casinos. In 1997, the Trump properties kept $1.17 billion after paying all bets, but before paying expenses.
Trump has retained Donaldson Lufkin & Jenrette Securities Corp. and Bear, Stearns & Co. to market the company, he said, confirming a story first reported in Friday’s Wall Street Journal.
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