Riviera Holdings ends review process with no sale

By Lisa Kerner

Charlotte, N.C., March 7 - Riviera Holdings Corp. completed its formal strategic review process that it began in May 2007.

During the process, the company's financial adviser, Jefferies & Co., contacted more than 35 potential bidders, including Riv Acquisition Holdings Inc. and its affiliates, in an effort to possibly sell the company.

Riviera, in terminating the review, said it considered the following:

• Uncertainty that a buyer could complete a potential transaction;

• Deterioration in the credit markets;

• Costs of terminating the company's swap agreement due to lower interest rates;

• Ability to obtain shareholder and regulatory approvals for a sale;

• Possible increased competition from Colorado racetracks; and

• Weak economic conditions.

While the review did not result in a sale of the company, Riviera will consider all proposals it receives and continues to have discussions with the Riv Acquisition group regarding a possible sale of the company, according to a company news release.

Riv Acquisition previously offered to acquire Riviera for $34 per share.

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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