Icahn Leads in Pursuit of Bankrupt Las Vegas Casino
Carl Icahn, fresh off capturing the Tropicana Casino in Atlantic City for a fraction of its worth in a New Jersey bankruptcy, may pull off another coup as he leads bidders on the Fontainebleau casino in Las Vegas. Icahn placed another of his stalking-horse bids, laying down $156.5 million toward the bankrupt casino project.Penn National Gaming dropped from the bidding rather than engage in a costly war with Icahn over the partially developed property. The casino, sitting on the famed Las Vegas Strip, is about 70 percent finished, with an estimated $1.5 billion needed to complete the gambling venue.
Penn dropped from the bidding at $145 million after making an initial offer of $101 million.
The casino will be auctioned on January 21st, with potential bidders knowing they need to top Icahn's figure to have a chance of winning the gaming property.
Fontainebleau spokesmen have said as many as 17 potential bidders remain, although names were not provided.
Penn has been actively seeking a Strip casino as a crown jewel in its regional casino empire since it began talks with MGM Mirage over some of its properties over a year ago, but has been unable to find a deal amenable to its executives, with prices still well above profits for Vegas casinos.
