Riviera Holdings Agrees to Acquisition - Monday 10th of April 2006

LAS VEGAS – Riviera Holdings Corporation (Amex: RIV) and Riv Acquisition Holdings Inc., a company owned by a private investment group, today announced they have entered into a definitive merger agreement under which all of the outstanding shares of Riviera Holdings Corporation will be acquired for $17.00 per share in cash, other than shares held by William L. Westerman, Riviera's chief executive officer. As previously reported, Mr. Westerman has agreed to sell his shares to the investment group for $15 per share in cash and to vote his shares in favor of the acquisition. The acquisition represents a premium of 21% over Riviera's closing stock price on December 23, 2005, the last full trading day before the agreement with Mr. Westerman was reported, and a premium of 13.3% over Riviera's closing stock price on March 22, 2006, the day before Riviera reported that it had resumed discussions with the investment group at $17 per share. The total acquisition price is approximately $426.5 million, including the repayment or assumption of approximately $215 million in outstanding Riviera Holdings Corporation debt.

William L. Westerman, Chief Executive Officer of Riviera Holdings Corporation, said, "I am extremely pleased that the long-term investors in our company will have the opportunity to realize a significant premium over the historical price of our company's stock.

"Also, Riviera is gratified that the investment group recognizes the value of the Riviera properties as an ongoing operating entity and that the group plans to invest additional capital to enable Riviera to maintain its competitive position and grow."

The private investment group that owns Riv Acquisition Holdings Inc. is led by Chicago developer and casino investor Neil Bluhm, Starwood Capital Group Chairman and CEO Barry Sternlicht, 30-year Las Vegas-based real estate developer Brett Torino, and Paul C. Kanavos, Chairman and CEO of Flag Luxury Properties, LLC. The Managing Partners of Flag Luxury Properties are Mr. Kanavos and Robert Sillerman.

Scott Butera, on behalf of Riv Acquisition Holdings Inc., said, "The group looks forward to working with the existing management team and employees on a long-term strategy for Riviera. Investment in the nostalgic Las Vegas Strip resort is long overdue and it is now important to provide the Riviera with the necessary capital and resources to compete in its market segment."

Mr. Bluhm said, "Our investment group has the resources and patience to commit significant capital and implement a long-term strategy to re-position the Riviera as a competitive Las Vegas Strip property and manage operations at both the Las Vegas and Black Hawk properties after the closing of the merger."

The transaction is subject to the approval of Riviera Holdings Corporation's shareholders and the satisfaction of customary closing conditions, including all necessary Nevada and Colorado gaming and other governmental approvals. The transaction is not subject to a financing contingency. Due to the time required to receive all necessary governmental approvals, it is expected that the transaction will be completed in the first half of 2007.

Bear Stearns & Co., Inc. served as financial advisor to Riv Acquisition Holdings Inc. and Cadwalader Wickersham & Taft LLP acted as legal advisor. Jefferies & Company, Inc. served as financial advisor to Riviera Holdings Corporation and Gordon & Silver, Ltd. acted as legal advisor.

Other news from around the same time

Las Vegas Sands Adds Barneys NY - Monday 10th of April 2006

LAS VEGAS – Las Vegas Sands Corp. (NYSE: LVS), owner of the famed Venetian Resort Hotel Casino,....


Delaware Slots Going Non-stop - Monday 10th of April 2006

DOVER, Delaware – As reported by the Delaware State News: "The slot machine facilities at Delawar....


Lakes Receives $2.6 Million Settlement - Monday 10th of April 2006

MINNESOTA – As reported by the St. Paul Business Journal: "Lakes Entertainment Inc. has received ....


Bally Technologies Game Approved - Monday 10th of April 2006

LAS VEGAS –- Bally Technologies, Inc.(NYSE: BYI) announced today that its innovative new multi-....


EU Calls for Opening Up Sports Gambling - Monday 10th of April 2006

BRUSSELS As reported by Xinhua: "The European Commission (EC) on Tuesday announced it would take l....


- Monday 10th of April 2006

....


PPA Pushes for Poker Players' Rights During Events on Capitol Hill - Monday 10th of April 2006

By Aaron Todd The Poker Players Alliance (PPA) hasn't gone all-in, but it has raised the stakes. Th....


New South Carolina Casino Boat Sets Sail - Monday 10th of April 2006

SOUTH CAROLINA – As reported by the Myrtle Beach Sun News: "A new gambling boat could begin saili....


Over 500 Gambling Outlets to be Closed in Moscow Shortly - Monday 10th of April 2006

MOSCOW As reported by Itar-Tass: "More than 500 gambling establishments will be closed in Moscow C....


California Band Appeals Casino Injury Ruling - Monday 10th of April 2006

CAMPO INDIAN RESERVATION, California – As reported by the San Diego Union-Tribune: "Arguing that ....