REITs Expected to Be Lead Bidders for Trump Casinos
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NEW YORK — Real estate investment trusts, stampeding into gaming and lodging recently, are expected to be the leading bidders for Trump Hotels & Casino Resorts Inc., industry sources said Friday.
The company has held preliminary discussions toward a merger with Patriot American Hospitality Inc. and Meditrust Corp., two acquisitive REITs, according to a knowledgeable source who asked not to be identified.
A Meditrust spokeswoman said the company does not comment on market rumors or speculation, and a Patriot American spokeswoman was not immediately available to comment. A Trump Hotels spokesman declined comment.
A second source close to Trump Hotels said the hiring of Bear Stearns & Co. and Donaldson Lufkin & Jenrette Securities Corp. will likely result in a “bid book” being circulated among parties interested in making an offer.
Trump Hotel shares rose more than 19%, gaining $1.75 to $11.06 in consolidated trading on the New York Stock Exchange. Patriot shares slipped 37.5 cents to $26.50 and Meditrust edged up 12.5 cents to $31.50.
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