Icahn again taking hotel-casino private

Friday, March 29, 2002 | 11:41 a.m.

Financier Carl Icahn is once again moving forward with a proposal that would take Stratosphere Corp. completely private.

The $44.3 million deal, first proposed in 2000, would give the Stratosphere's outside shareholders $45.32 per share. Nybor L.P., a company completely owned by Icahn, would receive $44.33 per share.

Only 211,400 shares, or 10.5 percent, of Stratosphere's stock is held by outside shareholders, who will be paid a total of $9.6 million. Nybor holds 39 percent of the company, or 783,000 shares, which entitles it to payment of $34.7 million.

Stratosphere's board first accepted the proposal in September 2000, but the two sides did not proceed with the transaction at that time. Icahn formally renewed his proposal in January, the company said, and the board voted to recommend approval in February.

Icahn took control of the then-bankrupt Stratosphere in May 1998. He had been discussing taking the Stratosphere private with some directors since 1999, documents filed with the Securities and Exchange Commission state.

If approved by shareholders, the Stratosphere would be wholly owned by American Real Estate Holdings Partnership, a company controlled by Icahn. AREH now owns 51 percent of the Stratosphere. A special shareholder meeting will be held to vote on Icahn's proposal at an unspecified date.