Gaming news briefs for June 10, 2004

Thursday, June 10, 2004 | 11:12 a.m.

Casino operator to buy cinema company

AUCKLAND, New Zealand -- Sky City Entertainment Group Ltd., New Zealand's largest casino operator, said Wednesday it will acquire cinema company Sky City Leisure Ltd. after gaining control of 95.8 percent of the company's shares.

Sky City Entertainment, based in Auckland, already owned 74 percent of the cinema company when it sought the rest in April. It paid 82 New Zealand cents apiece for Sky City Leisure shares and NZ$1.60 for each convertible note.

Sky City is restricted from building new casinos or expanding its existing gaming operations in New Zealand by government rules. To boost earnings, Sky City is buying casinos in Australia, investing in rival New Zealand casinos and adding business such as Internet gaming and the cinema company.

Publishing & Broadcasting may drop bid for casino

SYDNEY, Australia -- Publishing & Broadcasting Ltd.'s A$686 million ($473 million) bid for Burswood Ltd., owner of Western Australia state's only casino, may be dropped after the media company named a new chief executive, analyst Patrick Russel said Wednesday.

The appointment of John Alexander, 53, former editor of the Sydney Morning Herald, as CEO of Publishing & Broadcasting puts the focus on media and away from gaming, where former CEO Peter Yates wanted to expand, Russel, an analyst at Merrill Lynch & Co, said in a note. Yates, a former investment banker, resigned Tuesday.

"We believe there is now a fair chance Publishing & Broadcasting will let the Burswood takeover lapse on July 2," Russel said.