Icahn Increases Bid For Trump's Atlantic City Casinos
Billionaire Carl Icahn has made a living out of buying Atlantic City casinos in financial trouble, then turning them around and selling them for a large profit. It appears his sights are set on doing that again with Trump Entertainment Resorts.
Icahn, who famously bought the Sands years ago, only to flip it for a large profit, is seeking to buy the bank debt on three properties owned by Trump Entertainment in Atlantic City. Trump Marina Hotel Casino, Trump Taj Mahal Casino Resort, and Trump Plaza Hotel are all being sold.
The bondholders for the three properties are also attempting to buy the company. Their offer is currently at $225 million. If the bondholders gain control, Donald Trump would be a ten percent owner of the company.
Trump walked away from the company that bears his name earlier this year when he disagreed with the direction the company was going. Trump, at the time, attempted to buy full control of the company, but was turned away.
Icahn increased his offer this week to purchase the three casinos' debt. The original offer was for $486 million, but Icahn has agreed to pump $125 million more in financing into his offer. That would make his offer significantly more attractive than the bondholders offer.
Atlantic City casinos have been struggling for over a year now. The casinos in the city have experienced double digit declines for many months in a row, but both Icahn and Trump have vowed to bring the city's casino industry back to its glory days.
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