Jacobs Entertainment tries to top Eldorado offer for MTR Gaming - Beckley, Bluefield & Lewisburg News, Weather, Sports

Jacobs Entertainment tries to top Eldorado offer for MTR Gaming

Posted: Updated:
  • Local NewsLocal NewsMore>>

  • Tazewell County Man Busted for Growing Marijuana

    Tazewell County Man Busted for Growing Marijuana

    Monday, September 1 2014 8:04 PM EDT2014-09-02 00:04:51 GMT
    Roger Lee Sparks, Jr.Roger Lee Sparks, Jr.
    A Richlands man is in custody after Tazewell County Deputies find $350,000 worth of pot, including 115 plants and more than a pound of harvested marijuana, and guns in his home.
    A Richlands man is in custody after Tazewell County Deputies find $350,000 worth of pot, including 115 plants and more than a pound of harvested marijuana, and guns in his home.
  • Officers In Tazewell County Work To Keep Your Holiday Travel Safe

    Officers In Tazewell County Work To Keep Your Holiday Travel Safe

    Monday, September 1 2014 6:50 PM EDT2014-09-01 22:50:12 GMT
    Police patrolling the roads this Labor DayPolice patrolling the roads this Labor Day
    According to AAA, 34.7 million people are expected to hit the road this Labor Day. Many police officers are out in force to keep you safe.
    According to AAA, 34.7 million people are expected to hit the road this Labor Day. Many police officers are out in force to keep you safe.
  • After fatal McDowell County crash, Troopers caution against drinking and driving over Holiday Weekend

    After fatal McDowell County crash, Troopers caution against drinking and driving over Holiday Weekend

    Monday, September 1 2014 6:00 PM EDT2014-09-01 22:00:38 GMT
    While many are safely celebrating Labor Day, State Troopers want to caution everyone about the dangers of drinking and driving.The West Virginia Department of Transportation says over the last 5 years in the Mountain State, almost 800 people have been killed in a drink driving crash just during Labor Day Weekend. Troopers released these pictures from Sunday morning's fatal crash to show the consequences drinking and driving can have.Read full story on Sunday morning's fatal crash in McDowell ...
    While many are safely celebrating Labor Day, State Troopers want to caution everyone about the dangers of drinking and driving.The West Virginia Department of Transportation says over the last 5 years in the Mountain State, almost 800 people have been killed in a drink driving crash just during Labor Day Weekend. Troopers released these pictures from Sunday morning's fatal crash to show the consequences drinking and driving can have.Read full story on Sunday morning's fatal crash in McDowell ...
MORGANTOWN, WV (AP) -

Jacobs Entertainment is trying to buy West Virginia-based MTR Gaming Group, offering a deal it says is 10 percent richer for shareholders than MTR's planned merger with Eldorado Resorts.

In U.S. Securities and Exchange Commission filings Wednesday and a letter to MTR, chief executive Jeffrey P. Jacobs said his unsolicited offer of $5.69 per share is worth $15.6 million more than Eldorado Resorts' offer of $5.15 per share.

He also argues that MTR's board wouldn't be selling control of the company and could still appoint the majority of the board of directors.

The pending merger announced last month would give Nevada-based Eldorado 55 percent of the new company, which would have a combined per-share value of about $1 billion.

Jacobs owns more than 5 million shares, or 18 percent, of MTR's stock.

Eldorado senior vice president Tom Reeg declined comment on the offer Thursday. MTR didn't immediately respond. Its stock, however, surged in morning trading.

MTR runs Presque Isle Downs & Casino near Erie, Pa., Mountaineer Casino and Racetrack & Resort in Chester, W.Va., and Scioto Downs Casino & Racetrack near Columbus, Ohio.

Because he's already licensed in MTR's locations, Jacobs argues his proposal would win regulatory approval faster and is therefore superior.

Eldorado operates the Eldorado Reno and Silver Legacy, both in Reno, Nev., and Eldorado Shreveport in Louisiana.

In announcing their merger last month, MTR and Eldorado said it would create a powerful force that could play a role in the consolidation of the gambling industry. If shareholders and regulators approve, the new company will be publicly traded, with Eldorado's Gary Carano serving as chief executive officer.

Both companies have been limited by size, lack of geographic diversity and balance sheets.

The combined company will have nearly 10,000 slot machines and video lottery terminals, 283 table games and 3,282 hotel rooms. Eldorado employs 4,550 people, and MTR employs 2,848.

In May, Jacobs offered to sell his company to MTR in exchange for $144.5 million in MTR stock, saying it would help the company diversify. He withdrew that offer after the Eldorado announcement.

Jacobs Entertainment also owns the Colonial Downs thoroughbred track and 10 off-track betting facilities in Virginia; The Lodge Casino at Black Hawk and the Gilpin Hotel Casino, both in Colorado; the Gold Dust West-Reno, the Gold Dust West-Carson City and the Gold Dust West-Elko in Nevada; and 23 video poker truck stops in Louisiana.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.