No Takers for Trump Casinos
RENEE MONTAGNE, host:
Donald Trump has tried and failed to find a buyer for the casino company bearing his name. Trump Entertainment Resorts said yesterday it has ended talks with potential buyers of the company. The announcement sent Trump's share price down sharply.
NPR's Jim Zarroli reports.
JIM ZARROLI: Donald Trump may pride himself on his deal-making skills, but this time his company's efforts fell short. Trump Entertainment Resorts was in talks with a group of investors led by real estate developer Morris Bailey. But yesterday, the company said the offers it received weren't likely to lead to a transaction.
Goldman Sachs immediately downgraded Trump's shares. Bear Stearns issued a report saying the failure of the deal speaks to the difficult operating environment in Atlantic City, not to mention the fundamental problems inherent in Trump's properties.
Trump owns three casinos in Atlantic City. The company has about $1.4 billion in debt, and it faces competition from new casinos. A spokesman for Trump said the company would now focus on its existing operating plan, which calls - among other things - for cutting costs.
Last week, the company fired two of its executive vice presidents and said it would not fill either position. The spokesman wouldn't say why the deal fell through. Some analysts say Trump may now have to think about selling off his casinos one by one.
Jim Zarroli, NPR News, New York.
NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.