Monday, October 25, 2010

Boyd won't buy rest of Borgata

Boyd Gaming announced today that it will not purchase the rest of the Borgata in Atlantic City. Borgata was a 50/50 joint venture between Boyd and MGM. Recently MGM announced that they had an offer on the table to sell their share of the property. That offer was made by Leonard Green & Partners.

As the operating partner Boyd had a chance to match that offer. Today Boyd announced that they were declining to purchase the rest of the property:

"Given other opportunities and our current focus on deleveraging our balance sheet, the current offer would not provide a sufficient return on investment for our shareholders. Despite this decision, we are confident in the future of Borgata. The property represents a major investment by Boyd Gaming, and it has delivered substantial value for our shareholders. We remain comfortable with our current position as managing member and 50% owner of Borgata, the region's premier destination resort."

Source: Boyd Press Release.