Icahn Group Lands Tropicana
The Icahn Group finally landed the Tropicana in Atlantic City. I’ve been following this chase for a while and I’m finally at a loss with the deal being complete. The Las Vegas Sun details where the situation stands today.
Who says you can’t time the market?
When the Tropicana Casino and Resort was put up for sale in Jan. 2008, it was expected to fetch about $1 billion.
But after the economy tanked, a group of investors including billionaire Carl Icahn offered to swap $200 million of debt they had already bought at a steep discount in return for ownership of the casino.
And it worked.
“This bargain-basement price for what had been one of the city’s heavyweight casinos is a sign of the troubling times, both in the world at large and Atlantic City in particular,” said Joe Weinert, a casino analyst with Spectrum Gaming Group. “The Tropicana is an attractive asset that, with the proper focus, has a good upside when the economy rebounds.”
For more details you can read the full article on the Las Vegas.
