Trump Atlantic City Casinos Sale Falls Through the Cracks

As we reported last week, Trump Entertainment Resorts, Inc. was heavily into discussion to sell off its casino interest in Atlantic City to a hedge fund group and private equity firm.

The market price and that which was sought by Trump, had a huge variance.

Today the entertainment company said it has ended talks to sell, as a deal could not be reached. Shares in Trump Entertainment plunged 14 percent on this announcement - down $1.81 to $10.77.

Trump casinos have been hurt by an indoor smoking ban that went into effect recently in New Jersey, as well as the start of slots gambling in Pennsylvania.

Atlantic City's seaside resort area has overall been hurt by these new changes to the landscape.

For several years, Atlantic City has been trying to change its persona of mostly day-trippers into a destination more like that of Las Vegas.



2007-07-02