Reno Gazette-Journal from Reno, Nevada on November 19, 1985 · Page 15
Get access to this page with a Free Trial

A Publisher Extra Newspaper

Reno Gazette-Journal from Reno, Nevada · Page 15

Publication:
Location:
Reno, Nevada
Issue Date:
Tuesday, November 19, 1985
Page:
Page 15
Start Free Trial
Cancel

MGM sale From page 8B At the end of 1984, the company listed $1.4 billion in assets. In the last three quarters, ending Oct. 29 the Chicago giant reported earnings of $30.2 million on revenues of $1.86 billion. Meanwhile, the tower project could be competing against a proposed 800-room tower at Bally's Park Place casino in Atlantic City, Lee said. Bally's board of directors in Chicago is expected to take up the $80 million-$100 million project at its December meeting. Saul Leonard, gaming partner in Los Angeles for Laventhol & Horwath, a national accounting firm specializing in the leisure industry, said he believes Bally would be more likely to build a feature attraction to the Reno property. "Bally is a major factor in the leisure industry, with a number of amusement parks. I'm sure they know how to promote and create excitement." While saying both MGMs are "jewels," Peltier said he expects the hotel-casinos will be made to look brighter. And he expects that if any machines need replacing, "we build the best machines, so I'm sure they'll be Bally." George Drews, president of International Game Technology in Reno, said Bally buys some slot models from IGT that it doesn't produce. "They have been enlightened enough to buy from us in Atlantic City," he said. Overall, the look of Bally will be bright and machine-oriented, Lee agreed. "You know when you walk in the MGM-Reno, you get that kind of stoic, regal atmosphere? My guess is they will change that. "It will be a cross between an MGM and a Circus Circus," he said. "There'll be more glitz and flitter, more concentration on the slot machines." Leonard doesn't really see much change. The MGM and Bally's Park Place are operated much the same. Both, he said, "have been going after Mr. and Mrs. America who have paid to come to the facility." "Both properties are bottom- line oriented rather than top-line oriented," he said, meaning they're not heavily into comping guests with free rooms and food. Leonard said he believes Reno could get a shot in the arm next year because Bally will have to promote the Bally Grand name. Bally hopes to complete the sale by March 1986. Looking at the competition in Las Vegas, the analysts agreed Bally's purchase of the MGM and the Golden Nugget's proposed purchase of the Dunes across the street, announced Friday, will make the Four Corners on the Strip even more exciting. Leonard said he expects Stephen Wynn, Golden Nugget chairman, to demolish at least part of the Dunes Hotel if his bid to buy the property out of bankruptcy court for $110 million is accepted. "There's a desperate need for it," Leonard said of tearing down much of the Dunes, adding that much of recent expansion was rather haphazard. Bally is expected to draw on some of its Bally's Park Place executives for licensing as key employees to run the hotel-casinos. Lee said he expects Bally to put its own people in place at its hotel in Las Vegas, which would serve as headquarters for the state. His guess would be that the company would retain MGM-Reno President Barrie Brunet to manage the Reno property. Casino owners in Reno see the purchase in a favorable light. "The MGM has been one great source of business for the entire community," said John Ascuaga, owner of the Nugget in Sparks. "Barrie, as the head honcho, is responsible for that." Don Carano, owner of the Eldorado, seconded Ascuaga's comments. He added that Bally should also prove to be a good neighbor. The biggest question in all these maneuverings, however, is the next move of Kirk Kerkorian, the Beverly Hills investor who owns 70 percent of the MGM stock. He would receive about $286 million from the MGM Grand Hotels, which was spun off from Metro-Goldwyn-Mayer Film Co. in 1980. And he recently agreed to sell MGMUA to Ted Turner for $1.5 billion. He has said he would build a new movie company around United Artists Corp., which he would repurchase from Turner Broadcasting for $485 million. "Kerkorian is the mystery of the day," Lee said. "He's going to walk away from two transactions with somewhere in $500 to $800 million in cash. "He's not a man to sit on even a hundred dollars for long. The most unwanted phone call in the country today will be Kerkorian calling a chief executive officer for a copy of his annual report. There are very few companies that would be too large for him to buy." And Lee wouldn't be surprised if Kerkorian decides to build another MGM Grand down the road, after a three-year prohibition included in the sales agreement would expire. Kerkorian has done it before. When he sold what became the Las Vegas and Flamingo Hilton to the Hilton Corp. in the early 1970s, he turned around and built an even bigger hotel, the MGM-Las Vegas. As for the MGM hotels, Lee said Kerkorian is probably disappointed that the bottom line didn't improve after both properties were expanded in the summer of 1981, boosting the total room count to 5,000, a 40 percent increase. Prior to the fire in November 1980 that killed 87 people at the MGM-Las Vegas Lee said the hotels produced an operating income of $72 million. That's income produced before taxes and long-term debt is considered. In the latest 12-month period ending in August the hotels produced an operating income of $62 million. It remains to be seen whether Bally can change the profit picture. However, Lee called the firm, "very good operators," The analysts were split on what these latest deals mean for Nevada. Both the Golden Nugget and Bally, through its Park Place casino, derive a significant portion of profits from Atlantic City. The proposed purchases could mean money may be moving back to Nevada, Lee said. "The gaming industry has come full circle," he said. "When Atlantic City first opened, the money used to come from Nevada." "I think we're seeing a possible change in the face of the industry," Leonard said. Reno Gazette-Journal Tuesday, November 19, 1985 5B $3 billion backup proposed for ailing Farm Credit System WASHINGTON (AP) - Farm-state lawmakers Monday unveiled legislation aimed at rescuing the troubled Farm Credit System, including a $3 billion backup line of credit. The measure, to be formally introduced Tuesday by House Agriculture Committee Chairman Kika de la Garza, D-Texas, and three other senior committee members, calls for stronger regulation of the loosely knit $70 billion lending system and a streamlining of FCS's cumbersome organization. Whether financial aid should be included in any package for the system, whose size would make it the nation's third-largest bank if it were a normal commercial institution, has been the subject of hot debate. The Reagan administra tion has resisted any effort at financial aid, arguing the system has untapped resources it can use. The system, the nation's largest -farm lender, is suffering along with the rest of the agriculture sector from the most serious rural depression in decades. Farmland values the collateral for the bulk of the system's loans have .' plummeted up to 50 percent over ' the past five years in the hardest hit areas of the Midwest. Z System officials report the 37 cooperatively owned banks will together lose $2.5 billion this year, with further losses expected in 1986 and 1987. Such losses would -soon eat up everything the system has set aside as a buffer against bad loans, according to FCS officials. BMW dismisses takeover talk DEARBORN, Mich. (AP) -BMW officials Monday shrugged off a persistent auto industry rumor a takeover attempt by General Motors Corp. The maker of luxury cars said it has been approached by GM, Ford Motor Co. and Chrysler Corp., but the personal interest of the controlling Quandt family of West Germany makes a takeover unlikely. "They have had such personal involvement in this company," said Gunter Kramer, chairman of BMW of North America Inc., a subsidiary of BMW AG. "Why should you give up something that's so profitable?" The late industrialist Hebert Quandt was credited with rescuing financially ailing Bavarian Motor Works in 1959. Quandt's widow and children still control 60 percent of the publicly traded company's shares THE LONG-TERM BUSINESS LOAN SPECIAUSTS Call Mark Poggenburg (702) 329-1229 THE MONEY STORE INVESTMENT CORP vj(Eo)iMr 103 (mmmilMih1 W WEBB) 1335? tfOsaiilii iiiEE m-mm. W mwm mm m mmm mmmm m wmm mwmm m mmm m bwm mummfmwmm mm. mm LWM hbmmb mmmmm. M m mmmLm 1131' IMOGU lil'MOUSEI mrm ikiy? ffir 111 mm vipvivi r m w mm CALL ME: Jy. TOM ENERSON $ fm 827-4660 k Pennington & Associates, Ine 1 Lie. Real Estate Broker TFTI BUSINESS owned and operated J NEED CASH IMMEDIATELY? Private party will pay top-dollar for existing deeds of trust or contracts of sale. Do you need help in problem real estate deals? I may be able to help. Problems solved quickly! Call today 826-4360. TONE & VOICE, DIGITAL DISPLAY & TONE ONLY UNITS. AVAILABLE NOW ARC SYSTEMS OR RENO (702) 358-1100 LOCALLY OWNED AND OPERATED OFFICE BUILDING Near MGM Grand & Reno Airport $3,000,000 - Excellent terms! Ask for Skip Hansen, CCIM Century 21 Skip Hansen & Assoc. Realtors 825-2700 1 DRAFTING ELECMECH INK WORK -P.C. BOARDS ARTWORKFILMS 323-4880 677-7117 THINK TWEED! The Ready-To-Wear Sportcoat from '14500 Old Suits In Your Closet? Remodeling GERARD'S Custom Tailors & Clothiers 108 Ruff Way 322-5049 Bfhind Arlington Towers J commercial U fct3ES, f,rsi liable D ii m tr - II m 1 . $ 25,000 ($15,000 min.) S276.55Mo. $ 50,000 $553.10Mo. $ 75,000 $829.1 OlMo. $100,000 ($500,000 max.) .... $1 106.20Mo. 1$ and 30 year terms Up to 80 of appraisal Fixed interest and payments Fast, friendly service ,.0n3moo A.P.R. g Advanced financial Cnrpnrailan CALL 323-8916 1866 Mill St., Reno at Karen Pcttcrson Photography by Karen MGM Grand Hotel. 42 Reno. NV H502 702-323-4070 November 8, 1985 Dear Karen, . Thanks so much for the private Boudo.r portfolio of me that you did for my husband tor Christmas! Obviously he loved the results and 1 can guarantee that he wouldn't have should the photos have been taken by a male photographer. Thanks so much again. Love, Pam Savings Rates (Thru November 26) Type Annual Annual Savings Rate Yield 3 Month Certificate ('1,000 Minimum) 8.560 8.904 6 Month Certificate ('5,000 Minimum) 9.500 9.925 ' 12 Month Certificate ('2,500 Minimum) 9.750 10.198 30 Month Certificate ('1,000 Minimum) 10.250 10.746 Effective Annual Yield assumes reinvestment at the same rate of both principal and earnings upon maturity. Rate subject to change at maturity. Lis -J WESTERN THRIFT W OF NEVADA 1 755 Vassar Street P.O. Box 7458 Reno, Nevada 89510 Bob Beach, President 329-3900 SIERRA NEVADA CHAPTER AMERICAN INSTITUTE OF BANKING AMERICAN BANKERS ASSOCIATION presents "To Catch A Thief" Fraud & Loss Prevention A Seminar on White Collar Crime featuring Frank W. Abagnale, Jr. "just possibly the world's most accomplished con artist... (retired). " The program will consist of the following: Check cashing Detection and methods used to assist in detection of checks of insufficient funds Credit cards Counterfeit money Color copier Con artists Merchant's rights Collection methods I THURSDAY, NOVEMBER 21, 1985 7:30 P.M. TO 9:30 P.M. PIONEER THEATER AUDITORIUM 100 S. VIRGINIA STREET RENO, NEVADA REGISTRATION Please enroll the following individuals at $12 per person Groups of 5 or more people, $10 00 per person A check for $ is enclosed, made out to Sierra Nevada Chapter. American Institute of Banking 5 Ltst additional names on a separate sheet of paper Please give correct name and mailing address so that admission tickets can be mailed Call Marilyn Gutride at 784-3528 for additional information Company Name Attention of: Address . City. State. Zip Telephone. ( . I - Tickets available at Ticketron MAIL RESERVATIONS TO: AMERICAN INSTITUTE OF BANKING co MARILYN GUTRIDE P. O. BOX 30100 RENO, NEVADA 89520 "Due '.- limited -ting there mm II be no refunds INTERNATIONAL GAME TECHNOLOGY HAS OBTAINED A $31,000,000 CREDIT FACILITY Financing was provided in part by First Interstate Bank of Nevada, where a commitment to business is backed by the resources of Nevada's largest bank. First Interstate Bank MEMBER FDIC Don't roll over your CD's until you look into... U.S. Government guaranteed Government National Mortgage Association mortgage-backed securities (Ginnie Mae pass-throughs as they're popularly known) olier the investor some unique opportunities and advantages. A dependable, monthly check from interest and amortization. Principal and interest guaranteed by the U.S. government. Many older Americans have found (linnie Maes to be a desirable way to supplement their social security and ret irement income. And many other investors have discovered they're an excellent addition to regular income. PaineWebber maintains an active secondary market in exist ing Ginnie Mae pass-throughs. So call to find out the possible benefits of (1XMA securities for your investment needs. Or, mail this coupon for our free brochure, "The Investor's Guide To Ginnie Maes." Call William Kottinger, III, at (702) 323-1641. Or mail this coupon. nun a Thank you PaineWebber Mr. William Kottinger, III, PaineYVebber 350 South Center Street, Reno, NV 89505 (702) 323-1641 Please send me additional information and a copy of your brochure "'The Investor's Guide To Ginnie Maes." NAME (Please Pf Tit) tOORESS CITY STATE HP HOME BUS PHONE PHONE it cesentty a ct.e"t pwase .nctude your investmem Executives name Membei SIPC 9 Bnd equivalent yield based upon the industry convent ion of a 12-year average life forthe current Ginnie Mae coupon stated above Yield as of November VX liW-V These certificates are subject to market Huctuat tons. The value may be more or less if sold any time prior to maturity.

What members have found on this page

Get access to Newspapers.com

  • The largest online newspaper archive
  • 21,000+ newspapers from the 1700s–2000s
  • Millions of additional pages added every month

Publisher Extra Newspapers

  • Exclusive licensed content from premium publishers like the Reno Gazette-Journal
  • Archives through last month
  • Continually updated

Try it free