Gaming exec is still in hospital

Thursday, June 17, 1999 | 11:02 a.m.

Arthur Goldberg, chief executive officer of the world's largest gambling company, will take longer to recover from an illness than originally expected.

Park Place Entertainment Corp. of Las Vegas issued that surprise announcement Wednesday.

Goldberg has been hospitalized at Johns Hopkins Hospital in Baltimore for at least two weeks, undergoing what Park Place officials said was treatment for an upper-respiratory infection.

When Park Place first disclosed Goldberg's illness June 3, it said he was expected to recover "in a short period of time." The latest announcement didn't indicate how extended the longer recovery period might be, though it said his health is improving.

Since Goldberg's hospitalization, rumors have swept through Wall Street gaming-stock circles about the 57-year-old Goldberg's health. As the hospital stay lengthened, the speculation mounted.

The announcement served a two-fold purpose -- it addressed the rumors, even if obliquely, and it helped Park Place comply with federal disclosure requirements regarding potentially material events.

Park Place said that during Goldberg's absence, his four executive vice presidents will continue day-to-day management of the company's operations.

Wallace Barr and Mark Dodson will oversee Eastern and Western Region operations, while Clive Cummis and Scott LaPorta will handle legal and financial matters.

Park Place Chairman Steve Bollenbach will provide general oversight while maintaining his primary responsibilities as chief executive of Hilton Hotels Corp.

"Naturally, we are anxious to get Arthur back to work as soon as possible, but it is in everyone's best interest to be sure he has fully recovered before resuming continuous management duties," Bollenbach said.

"The company's magnificent Paris property in Las Vegas will open as scheduled in September and transition efforts for the Caesars transaction are well underway. The Caesars transaction is expected to close on schedule in the fourth quarter of this year."

Goldberg engineered the $3 billion Caesars World acquisition, which will cement Park Place's position as the world's largest gaming company.