MTR Gaming Committee Rejects Acquisition Proposal
CHESTER, West Virginia – MTR Gaming Group, Inc. (Nasdaq: MNTG) today announced that on January 25, 2006 the Special Committee of the Board of Directors established to consider the previously announced management-led acquisition proposal from TBR Acquisition Group, LLC to acquire all of the shares of MTR for $9.50 per share in cash had decided, based on the information reviewed by the Special Committee and its independent financial and legal advisors, to reject the TBR acquisition proposal. The Special Committee has informed TBR of this decision.
The Special Committee determined that the TBR proposal did not sufficiently enhance stockholder value to justify curtailing a process of exploring potential strategic alternatives available to the Company. The Special Committee welcomed TBR to submit an improved offer as a part of this process.
The Special Committee believes that it is in the best interests of the Company's stockholders, and intends to continue, to explore a range of strategic alternatives and to exercise its functions unless and until the authority of the Special Committee is terminated by the Board of Directors of MTR. There can be no assurance that any transaction will result from the Special Committee's exploration of strategic alternatives.
On January 23, 2006 the Special Committee had received a letter from TBR stating that TBR was withdrawing its acquisition proposal effective 5:00 p.m. New York City time on January 30, 2006 unless prior to that time the Special Committee, on the Company's behalf, (i) delivered to TBR a meaningful substantive response to the acquisition proposal and to a draft agreement and plan of merger which TBR had submitted and (ii) agreed to be bound by a 45 day exclusivity period in favor of TBR. The Special Committee will not satisfy these conditions.
2006-01-28
