LAS VEGAS-Riv Acquisition Holdings is hopeful its new $34 bid for Riviera Holdings Corp. will help that company’s board change its mind about the dissident shareholder group. The board rejected a previous $27 bid, saying the Riv’s recent lock-up agreement with another Riviera shareholder group has resulted in, among other things, Riv being prohibited from acquiring the company for a period of three years. Riv has requested a response to its new offer by 5 p.m. Thursday, May 17.
The new, higher bid by Riv was prompted by a $30 per-share offer for Riviera last week from a group led by Ian Bruce Eichner and Dune Capital Management LP, and by Riviera‘s decision to retain a financial advisor (Jefferies & Co.) to evaluate that and any other bids that may be submitted. As of Wednesday afternoon, Riviera has yet to make a statement with regard to Riv’s new bid, and a lawsuit brought by Riv challenging the legality of Riviera’s previous rejection continues to wend its way through Clark County District Court.
Riv Acquisitions consists of Paul Kanavos and Robert Sillerman, the managing members of New York City-based Flag Luxury Properties LLC; Las Vegas developer Brett Torino; and Starwood Capital Group chairman and CEO Barry Sternlicht. “We expect the board to take this proposal very seriously and cease raising technical obstacles that we believe do not apply,” states Kanavos in a letter accompanying its latest offer.