Riviera Holdings said it will evaluate latest $34-per-share offer from Riv Acquisition

By Lisa Kerner

Charlotte, N.C., May 18 - Riviera Holdings Corp. said it is evaluating the latest proposal from the Riv Acquisition investor group to acquire the company for $34 per share in cash.

Jefferies & Co., Inc. is assisting the company in its review of the May 16 proposal, but no timeline for a decision was given, according to a company news release.

This latest offer is a $4 premium to the May 11 offer from a group led by Ian Bruce Eichner and Dune Capital Management LP. The Eichner Group's bid is an 11% premium over the original $27 per share offered by Riv Acquisition and recently rejected by Riviera.

Riv Acquisition's latest proposal includes a 15-day "go-shop" period in which Riviera may solicit other proposals. In the event that a superior proposal is received, Riv Acquisition is asking for reimbursement of expenses and no additional break-up fee payment.

In addition, Riv Acquisition said it is willing to enter into an agreement similar to the one it had with Riviera on April 5. The investors' necessary equity financing for the deal remains in place.

Riviera announced on May 11 that it will explore strategic and financial alternatives with the assistance of Jefferies.

Riv Acquisition includes Paul C. Kanavos and Robert Sillerman, the managing members of New York-based Flag Luxury Properties, LLC; Las Vegas developer Brett Torino and Starwood Capital Group chairman and chief executive officer Barry Sternlicht. The investor group also nominated an opposition slate of nominees for election as directors at the company's annual meeting scheduled for May 15.

Las Vegas-based Riviera owns and operates the Riviera Hotel and Casino in Las Vegas and the Riviera Black Hawk Casino in Black Hawk, Colo.

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