Starwood confirms talks on sale

Monday, April 12, 1999 | 10:33 a.m.

"There is no assurance that any transaction will occur or as to the timing of any transaction," the company's two-paragraph statement said. "Starwood does not intend to comment further on any potential transaction until a definitive agreement is reached or discussions are terminated."

Starwood has been talking with, among others, Park Place Entertainment Corp., the gaming operation spun off by Hilton Hotels Corp. earlier this year. Park Place President Arthur Goldberg would like to acquire the Caesars properties, though sources say the two sides are several hundred million dollars apart on price.

Starwood is seeking about $3 billion in cash for its casino operations and would use the proceeds to reduce its debt, which is about $8 billion.

Starwood Chairman Barry Sternlicht has often expressed concern over the volatility of gaming revenues, which can be impacted by runs of good or bad luck. Caesars Palace in Las Vegas, for example, is one of the casino world's premium baccarat destinations, catering to high-end players who can cause huge swings in quarterly results.

Starwood shares were quoted at $32.25, unchanged, in midday trading today, while Park Place shares were off 6.25 cents to $8.6875.