Hollywood Park Hires Investment Banker

Hollywood Park Inc. said it hired investment banker Morgan Stanley & Co. to help evaluate proposals from other groups as it seeks a special tax status that could make it an attractive partner or buyout candidate. The Inglewood-based operator of racetracks, hotels and casinos is trying to regain its status as a real estate investment trust that can also operate businesses other than real estate. There are only four other so-called paired-share REITs. The House of Representatives this month approved a bill allowing Hollywood Park to reinstate its special tax status, which the company had abandoned after winning it in 1984. The company said it expects to restore its REIT status in January 1999 if it gets the necessary approvals. Paired-share REITs in recent years have become popular vehicles for acquisitions, because the structure allows them to shield some income from federal taxes. Hollywood Park shares fell 19 cents to close at $19.25 on Nasdaq.