Financial firm to sell stake in casino

Thursday, Oct. 28, 1999 | 11:34 a.m.

THE ASSOCIATED PRESS

INDIANAPOLIS -- Conseco Inc., an Indiana financial services firm, says it's interested in selling off its minority stake in the Argosy Casino & Hotel in Lawrenceburg, Ind.

The Indianapolis Star reported today that Conseco has already been offered about $250 million for its 29 percent stake in the casino. Conseco Chairman Stephen Hilbert said he expects that value to rise in the next five months.

The majority owner of the casino is Argosy Gaming Co. of Alton, Ill. The other minority stakeholder is Centaur Inc. of Lafayette, Ind., with 13.5 percent. Under provisions of their partnership, Conseco and Centaur have the right to sell their stakes to Argosy after Dec. 10. Conseco is apparently interested in selling in an effort to reduce its debt load.

Argosy's chief financial officer told analysts Tuesday that the company was preparing to buy out its two partners, "since we consider that to be our biggest growth opportunity for Argosy in the short term." Argosy also operates casinos in Illinois, Iowa, Louisiana and Missouri.

The casino, located near Cincinnati on the Ohio River, recorded a profit of $77.5 million on $230 million in revenues over the first nine months of 1999. That's a 24 percent increase in profit over the year-ago period, and a 20 percent rise in revenues.