Trump Entertainment Resorts Explores Casino Sale
Trump Entertainment Resorts, the casino group chaired by Mr: Donald Trump, has hired Merrill Lynch, the Wall Street bank, to explore a possible sale. The real question is whether Trump is in play, Adam Steinberg, an analyst with Morgan Joseph, the broker, wrote in a note. “The answer is that virtually all casino companies, in this environment, can be had.” Mr Steinberg added that he believed that Mr Trump asked an investment bank to value the properties over the summer when speculation surfaced about a potential joint venture with rival casino owner, Steve Wynn. On Friday Trump Entertainment shares rose nearly 8 per cent on speculation that the casinos are up for sale. (They fell 18 cents to $18.01 in midday trading on Monday on the Nasdaq exchange). As part of a 2004 bankruptcy reorganisation, Mr Trump gave up majority control to his bondholders while still remaining the companys largest individual stockholder. Mr Steinberg wrote that Trump Entertainment was the subject of significant speculation, including suggestions of an asset swap of one property for riverboats owned by either Penn National Gaming or Ameristar Casinos. 
Trump Entertainment properties include Trump Taj Mahal Casino Resort and Trump Plaza Hotel and Casino, in New Jersey, and Trump Marina Hotel Casino, in Atlantic City Trump has struggled in the Atlantic City market, and its three casinos consistently lose money. In the fourth quarter of 2006, the company lost $9.7 million. Trump Plaza and Trump Marina have recently ranked tenth and eleventh out of Atlantic Citys 11 casinos in terms of revenue. The company had struggled for years under the weight of $1.8 billion ($1.37 billion) in junk-bond debt, with interest payments eating up most of the cash generated at the slot machines and blackjack tables. At a time when its competitors were polishing their offerings, the company filed for bankruptcy reorganisation in November 2004. Under the restructuring, the companys debt was reduced to $1.25 billion. It was the second time in bankruptcy court for the casino company. Mr Trump also unsuccessfully sought a license to operate a gaming hall in Pennsylvania last year. (Donald Trump Highroller Casinos)