Griffin Plans to Make Revised Resorts Offer

Hollywood producer Merv Griffin’s investment firm said Tuesday that it plans a tender offer for 2.9 million of Resorts International’s 5.7 million Class A shares, which would give shareholders an early opportunity to vote on the Los Angeles firm’s pending $36-a-share acquisition bid.

The offer, expected by Monday, is aimed at showing stockholder sentiment about the offer to the board of directors of the casino firm, a Griffin spokesman said.

Resorts Class A shares closed Tuesday at $28.675, up $1.25, on the American Stock Exchange.

Donald J. Trump, Resorts’ controlling shareholder, called the revised plan “a feeble and futile attempt to recast his prior offers to further confuse the marketplace.”

The altered Griffin Co. offer still has a key condition: that Resorts’ board sell Griffin 1.2 million presently unissued shares of Class B stock for $36 each.

Trump’s control rests on his ownership of 95% of the 752,297 Class B shares presently issued and outstanding. Each Class B share has 100 times the voting power of a Class A share.

Trump reiterated Tuesday that the Griffin bid for Class B shares is subject to his approval, “which will never be granted.” The Griffin camp has said the three independent members of the six-member Resorts board should decide the question, with Trump and his two representatives abstaining.

A 3-3 split between the director groups would put the matter before a court for a decision, according to lawyers for Trump and Griffin. The parties already are suing each other in connection with the contest over control of Resorts.

President Michael Nigris of Griffin Co. said the tender offer, if successful, would demonstrate that a majority of Class A shareholders desire the Griffin offer.

It also would show that Griffin is ready to put up $150 million immediately for stock, with the rest of the Class A stock to be acquired on completion of the proposed merger, Nigris said.