US-based operator Boyd Gaming has given up its 18-month pursuit of certain assets of its Las Vegas rival Station Casinos, stating that the move is no longer in the best interests of the company.
Station Casinos filed for bankruptcy last year as it struggled to cope with the debts taken on when it was taken private by Fertitta Management and Colony Capital. Boyd offered $2.45bn for the stricken company in December but Station chose instead to pursue the court process.
"Over the last 18 months, we have devoted significant resources in our attempt to acquire the Opco assets of Station Casinos," said Keith Smith, president and chief executive officer of Boyd Gaming. "Unfortunately, given bidding procedures that favour Station insiders, and our current view of the limited potential value of the operating and development assets, we have concluded this opportunity no longer makes sense for our company."
Boyd identified a number of provisions in the approved bidding process that it claimed made it difficult for bidders to compete for the assets on a level playing field. This included provisions that would allow Station to sell properties without including customer lists and IT infrastructure.
"Boyd Gaming remains committed to growth, however, we will only pursue transactions that are financially sound, fit well with our existing business and offer attractive long-term returns for our shareholders," Smith continued. "Clearly, this opportunity no longer meets these criteria."
It is thought Boyd’s decision to abandon its efforts to acquire Station will open the door for the Fertitta family to acquire most of the assets for approximately $772m as part of the company’s reorganisation plan.
