Gaming briefs for June 24, 2004

Thursday, June 24, 2004 | 11:12 a.m.

Missouri casino expanding

KANSAS CITY, Mo. -- Argosy Gaming Co., which completed a $105 million expansion of its Kansas City-area casino in December, has announced plans for another major improvement, including the addition of a hotel and parking garage.

The company, based in Alton, Ill., said this week it plans to spend $75 million on the 250-room resort hotel and 1,400-space parking garage at Argosy Casino Riverside.

In December, Argosy finished a new 60,000-square-foot one-level casino replacing Argosy's original riverboat, which opened 10 years ago as the Kansas City area's first casino.

The company said revenue for the first five months of 2004 rose 56.9 percent from the year-ago period, and that its share of the Kansas City market increase from 15.7 percent in the first five months of 2003 to 22.2 percent for the comparable period this year.

Casino urges rejection of Packer offer

SYDNEY, Australia -- Burswood Ltd., owner of Western Australia state's only casino, told shareholders not to accept Kerry Packer's Publishing & Broadcasting Ltd.'s revised A$716 million ($493 million) takeover offer and said it will pay a 10 cents a share dividend.

Publishing & Broadcasting, owner of Australia's biggest casino, increased its bid by 4.3 percent to A$1.46 a share cash if it gets 90 percent of Burswood, the threshold at which it can compulsorily acquire all outstanding shares.

The value of Sydney-based Publishing & Broadcasting's offer will be reduced by the amount of the dividend, Perth-based Burswood said.

"Burswood directors do not have sufficient confidence that PBL will acquire 90 percent of Burswood shares, or remove this condition, which would mean that Burswood shareholders that accept PBL's offer would not receive $1.46," Chairman Don Watt said in the statement.

The previous offer of A$1.40 a share from Publishing & Broadcasting, which is controlled by Australia's richest man, Packer, was rejected by Burswood was inadequate.