Trump, 3 Others to Discuss Griffin Offer on Resorts
Resorts International said Monday that controlling shareholder Donald J. Trump and three other directors will meet with representatives of Merv Griffin to “explore whether an acceptable offer would be made” for the casino operator.
The development was the company’s first public sign of movement since the television producer’s unsolicited takeover offers through his wholly owned Los Angeles investment firm, Griffin Co., began March 17.
While Resorts said it would talk with the Griffin people, however, the company said its board “determined not to accept” Griffin’s most recent proposal. The revised offer, made last Wednesday, was to acquire all of Resorts’ 5.7 million Class A shares for $36 a share after buying a controlling 1.2 million unissued Class B shares from Resorts for the same per-share price.
An earlier Griffin bid included an offer to buy Trump’s 752,297 Class B shares, which have 100 times the voting power of Class A shares and provide control of the company.
Trump said Monday: “I will not agree to sell my shares of Resorts Class B stock, to cancel my (management) services agreement with Resorts or to issue stock to the Griffin Co. that will dilute my control of Resorts.” Nevertheless, Michael Nigris, president of Griffin Co., responded quickly and affirmatively to the Resorts announcement.
“We are pleased that the Resorts board has agreed to meet with the Griffin Co. and its representatives to review and consider the Griffin offer,” Nigris said. “We are prepared to cooperate in providing the board with all information with a view toward having them accept our offer.”
The statement said nothing about amending the offer, despite the stress in Resorts’ statement on an “acceptable” offer. A Griffin spokesman, Mark Gill, said the important fact was that the parties were going to meet. A meeting date was not yet set, he said.
Resorts said the committee--composed of two “independent” directors, Trump and one of his representatives on the board--would “engage in discussions with Griffin Co. and . . . report promptly to the board without a recommendation.” Trump has three representatives on the board, which also has three outside directors.
