Investors propose acquiring Riviera Holdings for $27 per share

By Lisa Kerner

Charlotte, N.C., March 26 - A group of Riviera Holdings Corp. shareholders led by Paul Kanavos, Robert Sillerman, Brett Torino and Barry Sternlicht proposed acquiring the company for $27.00 per share, according to an amended schedule 13D filing with the Securities and Exchange Commission.

In a letter to the company's board, the investors, known as RV Acquisitions Holdings Inc., said their offer "represents a significant premium to Riviera's recent trading price" as well as "a multiple of 13.5 times 2006 EBITDA."

The proposal is conditional on several factors, including the company's cooperation in an updated due diligence review.

Closing conditions will not affect Riviera's ability to refinance its outstanding secured notes, the filing stated.

The investors said they are willing to "honor the salary continuation packages currently in place that have been negotiated with management as well as the change-of-control provisions in all currently outstanding stock option awards."

Riviera was asked to respond to the proposal on or before March 30.

Kanavos owns 836,588 shares, or 6.71%, of the company, which owns and operates hotels in Las Vegas.

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