|
|
|
ONLINE FEATURES
Book Reviews
BW Video
Columnists
Interactive Gallery
Newsletters
Past Covers
Philanthropy
Podcasts
Special Reports
BLOGS
Auto Beat
Bangalore Tigers
Blogspotting
Brand New Day
Byte of the Apple
Economics Unbound
Eye on Asia
Fine On Media
Green Biz
Hot Property
Investing Insights
Management IQ
NEXT: Innovation
NussbaumOnDesign
Tech Beat
Working Parents
TECHNOLOGY
J.D. Power Ratings
Product Reviews
Tech Stats
Wildstrom: Tech Maven
AUTOS
Home Page
Auto Reviews
Classic Cars
Car Care & Safety
Hybrids
INNOVATION
& DESIGN Home Page Architecture Brand Equity Auto Design Game Room SMALLBIZ Smart Answers Success Stories Today's Tip INVESTING Investing: Europe Annual Reports BW 50 S&P Picks & Pans Stock Screeners Free S&P Stock Report SCOREBOARDS Hot Growth 100 Mutual Funds Info Tech 100 S&P 500 B-SCHOOLS Undergrad Programs MBA Blogs MBA Profiles MBA Rankings Who's Hiring Grads |  |
DECEMBER 4, 2006
Boyd: Buyout In Vegas?  Boyd Gaming (BYD
) may be the next target in the buyout wave sweeping Las Vegas. On Oct. 25, Harrah's (HET
) Entertainment, featured in this column on May 29, got a $15 billion bid from Texas Pacific Group and Apollo Management. Earlier, casino owner Aztar (AZR
) was bought out after a four-way bidding war. "This time, it is Boyd, which owns and operates casinos in Nevada and four other states, that may be taken private," says Lawrence Haverty of Gabelli Global Multimedia Trust (GGT
). He identified Harrah's, Aztar, and media giant Tribune (TRB
) months before they became targets. Like them, Boyd owns valuable assets that are way underpriced, says Haverty, who puts its "private-market value" at 70 a share. The stock is now at 42.11, and Chairman William Boyd owns a 30% stake. Boyd's big attraction is its real estate in Vegas, Haverty says. It also owns 50% of the Borgata Hotel Casino & Spa in Atlantic City with MGM Mirage (MGM
). Major operators such as Steve Wynn or deal-hungry private equity groups could go after Boyd, says Haverty. But he says the most "fascinating player" who may make a bid is Carl Icahn, who already owns the Stratosphere and "is still trying to get a major foothold in Vegas." Icahn knows the value of land in Vegas, he adds. Lawrence Klatzkin of Jefferies (JEF
), who rates Boyd a "buy," notes that it is down 35% since its peak in April, but its "long-term potential hasn't changed." One big project is the $4 billion Echelon Place casino at the north end of the Strip, scheduled to open in early 2010. Boyd declined comment on any speculation.
Note: Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them.  By Gene G. Marcial
BW MALL
SPONSORED LINKS
Get BusinessWeek directly on your desktop with our RSS feeds.
Buy a link now! Add BusinessWeek news to your Web site with our headline feed. Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video. To subscribe online to BusinessWeek magazine, please click here. Learn more, go to the BusinessWeekOnline home page  | | |
 Copyright 2006, by The McGraw-Hill Companies Inc. All rights reserved.Terms of Use | Privacy Notice |
Printer-Friendly Version