Business gaming briefs for June 21, 2004

Monday, June 21, 2004 | 10:48 a.m.

Adelson company may be valued at $4 billion

Sheldon Adelson's Las Vegas Sands Inc., which operates the Venetian Casino Resort on the Las Vegas Strip, may have a market value of at least $4 billion after an initial public offering.

The value is based on its two casino properties and the market value of rival Wynn Resorts, Barron's reported.

Las Vegas Sands opened a second property last month, Sands Macao, in Macau.

Though there is no guarantee that Las Vegas Sands will go public, William Weidner, the company's chief operating officer, said a share sale would give the company more "financial flexibility" and "a currency" for future deals, Barron's said.

Wynn Resorts has seen its share price rise to $38 from an IPO price $13 a share in late 2002, Barron's said. It has a market value of $3.2 billion, with about $600 million in debt. Las Vegas Sands also has about $600 million in debt, though the equity value could be about $4.4 billion when cash flow from the casino properties are taken into consideration, Barron's reported.

Vegas entrepreneur asked to withdraw from slots campaign

WASHINGTON, D.C. -- Supporters of a drive to legalize slot machines in Washington say they asked Shawn Scott, a gaming entrepreneur, to withdraw from the project, the Washington Post said.

Scott, who launched his career in Las Vegas and now lives in the U.S. Virgin Islands, has purchased or developed more than a dozen gambling ventures over the past 10 years, the Post said.

Scott and his associates later sold many of those properties, in some cases as state regulators pressed for more information about his web of more than 140 privately held companies and partnerships, the Post said.

Scott, 38, has been pushing to get slots on the November ballot, although a local businessman, Pedro Alfonso, and former D.C. Council member John Ray are the public faces of the drive.

Scott didn't return calls made by the Post, it reported.

New Vegas flights planned

Four new Las Vegas flights, including two to previously unserved cities, will be added later this year by Tempe, Ariz.-based America West Airlines and its commuter partner, Mesa Airlines, America West announced today.

Three non-stop round-trip flights a week will be added Sept. 9 to and from New Orleans, a new America West destination, with the flights expanding to daily operation Dec. 16. New daily non-stop round trips also are planned between Las Vegas and Houston's George Bush Intercontinental Airport beginning Oct. 18.

America West will compete with Continental Airlines on the Houston route and Southwest Airlines on the New Orleans route.

America West also announced it would add a second daily non-stop round trip to and from Detroit beginning Oct. 18. The airline competes with Northwest Airlines and Spirit Airlines on that route.

Finally, Mesa Airlines, operating as America West Express, will add a non-stop daily round trip to and from San Diego beginning Oct. 18, bringing the total number of America West affiliated flights to and from that destination to five. The airlines compete with Southwest Airlines on the route.

Packer firm hikes bid

SYDNEY, Australia -- High-roller Kerry Packer's Publishing & Broadcasting Ltd., owner of Australia's biggest casino, boosted its takeover offer for Burswood Ltd. by 4.3 percent.

Publishing & Broadcasting today raised its bid by six cents to A$1.46 a share cash, valuing Perth-based Burswood at A$716 million ($494 million), according to a statement to the stock exchange. The bid is conditional on Sydney-based Publishing & Broadcasting getting 90 percent of the operator of Western Australia state's only casino.

Burswood shares had fallen as much as 4.1 percent since June 9, when John Alexander's appointment as chief executive of Publishing & Broadcasting led to speculation it may let the bid lapse so it could focus on its media assets, which include the country's top-ranked television network.

"I don't see anyone else bidding, so PBL can be patient and sit on this offer for a while," said George Raftopulos, who helps manage $610 million at Constellation Capital Management in Sydney.

The increased bid comes as companies seek acquisitions in Australia's A$15 billion-a-year gaming industry to combat government restrictions on new licenses and attract Asian gamblers to Australia in the face of competition from new casinos in Macau.