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Howard Stutz

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Boyd Gaming won't purchase all of Borgata

25 Oct 2010

By Howard Stutz
ATLANTIC CITY, New Jersey -- Boyd Gaming Corp. said this morning it wouldn't match the offer MGM Resorts International received for its 50 percent stake in Atlantic City's Borgata hotel-casino.

The Las Vegas-based company will continue to operate the Borgata.

"Given other opportunities and our current focus on deleveraging our balance sheet, the current offer would not provide a sufficient return on investment for our shareholders," the company said in a statement.

MGM Resorts said on Oct. 12 it had received an offer to sell its stake in the property and would receive proceeds of $250 million. As the managing partner in the joint venture, Boyd had the right to match the offer, reportedly made by Los Angeles-based private equity firm Leonard Green & Partners.

Boyd Gaming also reported the company's third quarter earnings were $5.6 million, or 6 cents a share, for the period that ended Sept. 30. A year ago, the Las Vegas-based company had net earnings of $6.3 million, or 7 cents a share.

The company's quarterly revenue in the quarter was $595.4 million, a decline of 4.1 percent.

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