Hollywood Park Rejects Buyout Offer

Hollywood Park has disclosed that it received--and rejected--a buyout offer of $35 a share, or about $135 million. The Inglewood-based horse racing and real estate concern said the price, which is about 20% above its current stock market price, was “inadequate.”

Directors of the track operating firm and its twin real estate entity, whose stock is traded over the counter as a single entity, “decided not to pursue” the proposal from an “investment group” that it did not identify.

Marjorie L. Everett, chairman of the operating firm and largest shareholder with 14.6% of its shares, referred questions to attorney Neil Papiano. However, the attorney said that because of considerations involving the federal securities laws, he would not identify the offering group.

“In reaching their decision,” a company statement said, “the boards determined that serious uncertainties were associated with the proposal.”

Papiano declined to elaborate Wednesday or to discuss whether any follow-up offer was expected but said nothing had changed since the release was mailed to the media on Monday.

Citing additional reasons for deciding that the proposed price was inadequate, the release said that “this would be an inappropriate time for any sale, considering the inherent values of the real property holdings . . . the future of racing in California and the benefits to be derived” from possible televising of horse racing in Southern California.

However, the firms’ Hollywood Park race track in Inglewood and Los Alamitos track have had their troubles lately. With competition for gamblers’ dollars from the new state lottery, the operating firm lost $3.5 million in the third quarter and $4.4 million in the nine months, compared to losses of $1.6 million and $1.1 million in the corresponding periods last year.

Although the real estate entity’s profits rose, the combined firms had a $1.3-million loss in the third quarter, compared to a $2.2-million profit last year. The combined firms’ nine-month profits dropped to $1.64 million from $4.5 million a year ago.