In its most recent annual report, the company said it planned to raze the Tropicana, develop a billion-dollar resort on the north half of the site and sell the remainder into a joint venture. As tentatively envisioned, the north site would hold 2,725 hotel rooms and suites; 200,000 sf of dining, entertainment and retail facilities; a 100,000-sf casino; a 3,800-car parking garage; and a four-acre rooftop pool recreation deck overlooking the Strip.

Since March 13, when Pinnacle and Aztar agreed to a merger at $38-per-share, there have been no less than 15 bids. Columbia's latest bid is 40% higher than the original bid. Prior to Columbia's $54 all-cash bid, JP Morgan stated in an opinion that Pinnacle's bid should be deemed superior because "a merger with a strategic sponsor such as PNK would not only be good for AZR shareholders, in our view, but also good for other stakeholders in the company such as employees."The latest opinions from analysts said Pinnacle should take its $78-million break-up fee and walk away. Pinnacle already is spending $800 million to build two casinos in St. Louis, and could explore other casino purchases on the Strip, according to analysts. The Sahara hotel-casino, for example, is supposedly being marketed by CB Richard Ellis.

In addition to the Tropicana Las Vegas, Aztar also owns the Tropicana in Atlantic City, which showed strong growth in 2005. All told, it owns seven casinos in six markets. Pinnacle does not have any casinos in Las Vegas or Atlantic City. Rather, it offers casinos and gaming resorts in Indiana, Mississippi, Louisiana, Missouri and Argentina.

Columbia Sussex, which obtained its first gaming license in 1990, owns and operates several casinos, including four in Nevada. The four Nevada casinos are Caesars Tahoe and the Horizon in Lake Tahoe, River Palms in Laughlin and the off-Strip Westin. If a merger agreement is executed, Columbia says it would expect to divest the Casino Aztar riverboat casino in Caruthersville, MO prior to closing the transaction.

For previous GlobeSt.com articles on the bidding war for Aztar, click on one of the following links:

Instant Insights /

Aztar Buys into Columbia Offer, Pays Off Pinnacle

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