Pinnacle won’t rule out buyout of Aladdin

Friday, April 12, 2002 | 11:11 a.m.

California gaming company Pinnacle Entertainment Inc. said today it does not plan "in the near term" to attempt a buyout of the bankrupt Aladdin hotel-casino on the Las Vegas Strip, but would not rule out that possibility at some point in the future.

Speculation that Pinnacle would enter the bidding on the $1.2 billion Strip casino emerged after Pinnacle hired Dan Lee, former chief financial officer of Mirage Resorts Inc., to be its chairman and chief executive. Prior to joining Pinnacle, Wall Street sources said Lee had worked with Colony Capital LLC of Los Angeles on its efforts to acquire the Aladdin -- and that touched off speculation that Pinnacle, under Lee, would partner with Colony Capital in its Aladdin bid.

But Bruce Hinckley, chief financial officer of Pinnacle, said this morning the company has a higher priority at the moment -- building a $200 million to $250 million casino in Lake Charles, La., a project approved by voters last weekend.

"With respect to long-term perspectives, we will be looking at different alternatives, but in the near-term, we are not looking to do anything with the Aladdin," Hinckley said. "Dan's focus is going to be getting a good understanding of the portfolio of properties we have. That's where his attention will be."

Pinnacle owns and operates seven casinos in Nevada, Mississippi, Louisiana, Indiana and Argentina.