Suit challenges Rainforest Cafe takeover

Monday, Jan. 3, 2000 | 11:34 a.m.

MINNEAPOLIS -- Rainforest Cafe Inc. said it was named in a shareholder lawsuit seeking to block the company's merger with Lakes Gaming Inc.

Rainforest said the suit alleges the company didn't meet its fiduciary obligations in considering the merger.

Rainforest said it has not yet reviewed the complaint in detail.

Rainforest last month agreed to be acquired by Lakes Gaming in a stock deal valued at $108 million in which Rainforest shareholders would receive 0.55 Lakes Gaming shares for each Rainforest share.

Rainforest operates 37 restaurants and stores with jungle themes, including one in the MGM Grand hotel-casino on the Las Vegas Strip.

Lakes Gaming was spun off from Grand Casinos when Park Place Entertainment Corp. of Las Vegas purchased Grand in January 1999. Lakes manages and is developing tribal casinos and has about 15 acres for future development on the Las Vegas Strip near the Polo Towers.

Lyle Berman is chairman and chief executive of both Lakes and Rainforest. He provided some of the start-up money for Rainforest and now owns about 7 percent of its shares.