Gaming Firm to Acquire Rainforest Cafe

Lakes Gaming Inc., operator of Louisiana’s two largest casinos, said it will acquire Rainforest Cafe Inc. for $108 million in stock and will run the operator of 37 jungle-theme restaurants as a subsidiary. Rainforest Cafe shareholders would receive 0.55 share of Lakes Gaming common stock for every share they own. At Wednesday’s closing prices, that would value Rainforest at $4.54 a share, a 21% premium for Rainforest shareholders. Lakes Gaming said the acquisition plan is part of an effort to diversify operations. The company operates the Grand Casino Avoyelles and Grand Casino Coushatta in Louisiana and is developing three casinos on Indian tribal property in California and Michigan. Shares of Hopkins, Minn.-based Rainforest Cafe, which have declined 75% since the beginning of 1998, fell 19 cents to $3.75 on Nasdaq before trading was halted for the news. Lakes Gaming stock closed unchanged at $8.25, also on Nasdaq.