Arizona Charlie’s officials unaware of deal

Thursday, June 10, 1999 | 11:16 a.m.

Station Casinos Inc. officials couldn't be reached for comment on a report the company is close to acquiring the Arizona Charlie's hotel-casino on Decatur Boulevard.

But officials from Arizona Charlie's and its sister property, the Stratosphere hotel-casino, say they are unaware of any such deal and doubt it is in the works.

"I don't have any knowledge of it," said Ron Lurie, general manager of Arizona Charlie's.

Similarly, Tom Lettero, chief financial officer of the Stratosphere, said he does not know of any such deal.

Both Arizona Charlie's and the Stratosphere are owned by billionaire financier Carl Icahn.

The gaming industry trade newspaper Gaming Today reported this week that a deal is imminent, citing anonymous sources.

Last year, Station made a bid for Arizona Charlie's while the casino was in bankruptcy. At that time, Station offered $61 million for the 258-room hotel-casino. But former owner Bruce Becker struck a deal with bondholder Carl Icahn to either procure a loan to pay his bond debt or surrender control of Arizona Charlie's to Icahn.

Icahn then struck a deal to sell his position in that agreement to Station. But Station hastily backed out of that side deal under high-level pressure from Crescent Real Estate Equities Co., the Fort Worth real estate income trust which at that time was in a separate deal to buy Station. Becker could not procure a loan, and he lost Arizona Charlie's to Icahn.

The Station-Crescent combination last summer also made a $230 million bid for Santa Fe Gaming Corp., owner of the Santa Fe hotel-casino in Las Vegas and the Pioneer hotel-casino in Laughlin. The bid was rejected.