By DONALD WITTKOWSKI, Staff Writer |
http://www.pressofatlanticcity.com/communities/atlantic-city_pleasantville_brigantine/mgm-gets-more-time-to-sell-percent-ownership-in-borgata/article_d93e77e8-c1d9-11e0-bfbf-001cc4c03286.html
Anthony Smedile
Boyd Gaming says it has no interest in purchasing the remaining half of Borgata.
ATLANTIC CITY MGM Resorts International is getting more time to sell its 50-percent stake in Borgata Hotel Casino & Spa as part of a settlement with New Jersey gaming regulators to leave the Atlantic City market.
The state Casino Control Commission voted Monday to extend the sale deadline by 18 months, from Sept. 24, 2011, to March 24, 2013.
MGM representatives told the commission that the company simply needs more time to sell the casino amid the weak regional and national economy. They said New Jerseys recent regulatory overhaul of the casino industry, combined with Gov. Chris Christies creation of a new state-run Tourism District to make Atlantic City safer and cleaner, should help to entice potential buyers in the future.
Were very optimistic that all of the changes implemented in the last six months or so will be very helpful, MGM attorney Nicholas Casiello Jr. said.
MGM has agreed to sell off its Atlantic City holdings after the New Jersey Division of Gaming Enforcement objected to the companys partnership in a Macau casino with a Hong Kong businesswoman whose father has alleged ties to Chinese organized crime. Pansy Ho and her father, Stanley Ho, have denied any mob links.
The DGE supported the commissions vote to extend the Borgata sale deadline, but reiterated the findings of its 2009 investigative report that called Pansy Ho an unsuitable business partner for MGM.
We want people to understand that nothing has changed with our opinions in that report, said George Rover, an assistant state attorney general who represents the DGE.
The remaining 50 percent of Borgata will continue to be owned by Boyd Gaming Corp. Up to this point, Boyd has not shown any interest in buying MGMs share.
Last October, MGM announced it had received a $250 million offer from an undisclosed potential buyer for a half-share of Borgata, but that deal fell through. The Press of Atlantic City and the Bloomberg news agency reported that the offer came from the Los Angeles-based buyout company Leonard Green & Partners LP.