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WHY ITT PASSED ON BALLY IN FAVOR OF CAESARS WORLD

     In the current issue of FORBES, Rita Koselka asks whether
ITT made the right decision in buying Caesars World, rather than
Bally Entertainment Corp.  ITT bought Caesars for an estimated
$2B while it could have acquired Bally for around "$850 million
in cash plus assumption of $260 million in debt."  And now, there
is speculation that the company's CEO, Arthur Goldberg, is
"fattening Bally to put it on the block at a better price than it
would have fetched from ITT."  Goldberg plans to invest around
$44M into a "riverboat" project in the Mississippi/Louisiana
area.  Such investments question whether he "wants to expand
rather than sell out."  And, if he does, "it will be for a lot
more than the $1.1 billion deal that ITT walked away from in
1993" (Rita Koselka, FORBES, 1/30 issue).
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