Investor in Casino Firm Riviera Opposes Buyout

A big investor in Riviera Holdings Corp. said it would vote against a buyout of the casino operator for $17 a share.

Riviera agreed last week to be bought by Riv Acquisition Holdings Inc., a private investment group, for about $211.5 million in cash. Riv Acquisition also agreed to assume or repay $215 million in the casino company’s debt.

D.E. Shaw Group, which holds about 1.2 million shares in Riviera, said in a letter to Riviera Chief Executive William Westerman that the offer “substantially undervalues the company’s assets -- especially its land on the Las Vegas Strip.”