Riviera Merger Hits a Snag
As reported by the Denver Business Journal: "The largest shareholder of Riviera Holdings Corp. is refusing to back the company's merger plan. "The parent of Riviera Black Hawk Casino, Riviera Holdings of Las Vegas has agreed to be acquired through a merger with Riv Acquisition Holdings Inc., a concern of real estate developers and investors. Riv is to pay $17 a share and, under a separate deal, $15 a share for those held by Riviera's CEO.
"Over the past year, Riviera stock has traded between $12.59 and $26.83 a share but lately has settled into the $19 range.
"D.E. Shaw Laminar Portfolios LLC, a New York company and with 1.2 million shares the largest shareholder of Riviera, announced Monday it won't support the deal, saying the $17 figure 'drastically undervalues the company's assets.' "
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