Icahn Bids on Tropicana – Rumor Confirmed
Almost a month ago rumor began circulating about Carl Icahn putting in a bid for the, state owned, Tropicana casino and hotel. Today comes confirmation that the Icahn Group is, indeed, putting a bid in to buy the Tropicana.
A group of lenders that includes billionaire investor and former Atlantic City casino owner Carl C. Icahn emerged Monday as the front-runner to buy the troubled Tropicana Casino and Resort in a bankruptcy auction.
However, the proposed purchase price was not revealed in documents submitted to the New Jersey Casino Control Commission designating the lenders as the so-called “stalking horse,” or leading bidder, in the sale.
It will take a while for any potential deal goes through, but it seems as if Icahn has the highest bid. In my previous post on the subject I questioned whether Carl Icahn was the best option as owner of the Tropicana.
Let’s be clear that money is the motive of any businessman. Icahn looks to get in and out of many deals quickly so he may be the person to provide immediate improvements. He is not the only person that can do this, but he has a track record to show that he’s done this in the past and that he will continue to do it when he smells money.
I’m still not sure that he will be the best option but if his bid is double the next highest his bid may provide the best option for New Jersey to sell. Once investing this kind of money, there will be financial motivation to turn business around. Money is the ultimate motivator in a deal for any investor. It will be interesting to see how this affects the future of Tropicana. I’m looking forward to seeing how this all plays out.
