Plans for EuroVegas in Madrid are moving forward despite Spanish press reports quoting opposition party secretary Thomas Gomez to the contrary, according to Las Vegas Sands.
LVS has assured it continues to develop the feasibility plan for the project, following comments from Gomez that the deal is going nowhere.
However, the negative coverage may not be all that bad for LVS shares. Thomas Allen of Morgan Stanley expects some upward movement on the news since it’s still not clear whether EuroVegas will deliver the returns on investment that investors expect from LVS.
Allen would not be surprised if the deal falls through given that LVS still needs a number of government approvals and also sees there being less of a drag on potential dividends and share buybacks if the deal dies.
He estimates LVS will return around $2bn to shareholders this year. If the project stays on track it won’t break ground until 2014, he said.
Source: Fantini’s Gaming Report.
