It is a sad day for Las Vegas locals to witness the Maloof family loosing their
casino. The financial whores that are taking over the Palms are only in it for
the money. The new owners of the Palms will leverage its debt to the max and
give less to the community.
Based on their track record, the new owners of the Palms will reduce the number
of employees, quality and service will go down, and they will keep more of the
gambler's money.
And their monopoly power over the market will increase.
________________________________
From: leetcrowell2 <lee.crowell@sbcglobal.net>
To: vpFREE@yahoogroups.com
Sent: Sat, January 8, 2011 12:23:33 AM
Subject: [vpFREE] Re: LVRJ: Equity groups seek controlling stake in Palms casino
> I hope you are correct, but from the article....
>
> "Should a deal be completed, given the would-be ownership structure of Palms,
>we would anticipate the property being rolled into the Caesars portfolio,"
>Santarelli told investors. "We believe this would have a positive impact for
>both the Palms, via its inclusion in the Total Rewards program"
>
> When the Borg, I mean Caesars Entertainment, invade, I fear George will find
>that resistance is futile.
I'm not sure that comment is very credible- note it comes from an analyst for
Well Fargo, not from Leonard Green or TPG. Apollo and TPG own Caesars, Not Green
and TPG- unless Apollo is will to include Green, or perhaps it should be looked
at the other way, does Green want to take on part of that huge debt that Caesars
has? That sounds improbable to me.
Maloff risked his butt on the new tower and the condos- and the condos aren't
selling and you know revenues are down in the other side of the business, so he
defaulted on his loan. But that does not necessarily mean he will have to give
up all of his equity or that Green and TPG want him to go- or that they want
Caesars to come in. Only time will tell, but I'm not writing George off just
yet- is it possible it is just a coincidence he settled with Michael Morton this
week, too?
Just my .02- but I've been wrong before- Thanks, Lee.
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