iviera said the Eichner group’s bid represents an 11 percent premium over a competing bid of us$ 27 per share from a dissident investor group led by Riv Acquisition Holdings.
The group led by Riv Acquisition is currently soliciting proxies in support of an opposition slate of nominees to the company’s board. The annual meeting is scheduled for May 15. The company said it will resubmit its proposal to acquire the company if its nominees are elected.
In a statement, Riviera Chairman William Westerman said the Eichner group’s us$ 30 per share offer confirms that the us$ 27 per share bid by Riv Acquisition "does not represent full value for our stockholders."
Earlier Friday, the firm said it has hired Jefferies & Co. to help the company explore strategic and financial alternatives, including a possible sale of the company. Westerman said the board will review the Eichner group’s bid with Jefferies & Co.
In fiscal 2006, the company posted a loss of us$ 300,000 on revenue of us$ 200.9 million. Riviera shares jumped us$ 1.39, or 4.4 percent, to a 52-week high of us$ 33.24 in afternoon trading. The stock has surged from a 52-week low of us$ 17.75 in mid-June 2006 to reach its previous high of us$ 32.60 on Monday.