LV company eyes expansion

Friday, May 21, 1999 | 11:49 a.m.

Responding to a shareholder question at the annual meeting at Sam's Town, Boyd said the company has also considered buying back shares to help bolster its stock price. But directors belief shareholder interests are better served now by reinvesting in capital expansion and strengthening the balance sheet.

Another shareholder, saying the company's stock-price recovery has lagged that of competing casino operators, asked whether Boyd is a potential takeover target.

"We've traditionally been an acquirer rather than an 'acquiree,"' Boyd said, adding that the company hasn't had any talks with potential buyers.

Boyd executive Robert Boughner outlined the company's plans for the Borgata, a $750 million, Italian-themed resort Boyd is building in a joint venture with Mirage Resorts Inc. in Atlantic City.

Listing reasons for the decision to enter that market, Boughner said the 12 casinos in Atlantic City grossed more than the 44 casinos on the Strip last year, and that the youngest New Jersey resort was built 12 years ago.

Surveys indicate potential Atlantic City visitors, including 41 million adults living within driving distance, want to "trade up," or gamble at posher, more upscale new properties, he said.

Construction on the Borgata should start in 2000's first quarter, with opening currently scheduled for mid-2002, Boughner said.