Tropicana owner buying back shares

Thursday, Dec. 12, 2002 | 11:09 a.m.

SUN STAFF AND WIRE REPORTS

Aztar Corp.'s board authorized the repurchase of up to 4 million common shares, about 10 percent of its outstanding stock.

The Phoenix company owns the Tropicana gambling resorts in Las Vegas and Atlantic City. It also owns the Ramada Express Hotel and Casino in Laughlin, Casino Aztar in Caruthersville, Mo., and Casino Aztar in Evansville, Ind.

In a statement Wednesday, the company said it is undertaking the repurchase program because it believes its stock is "trading substantially below its intrinsic value."

Aztar's shares ended Wednesday at $13.50, down 14 cents, or 1 percent.

"Aztar's balance sheet is one of the strongest in the gaming industry, and the repurchase of 10 percent of the company's shares will not impact the timing, scope or financing of our plans for growth," Paul E. Rubeli, Aztar chairman and chief executive officer, said.

"With our marginal borrowing rate under 3.25 percent, the repurchase program will significantly enhance shareholders' returns," he said.

Aztar currently has 37.3 million shares outstanding.