Penn Withdrawals From Fontainebleau Bidding Process
Penn National Gaming (PENN: 24.91 0.00%) has formerly withdrew its bid on the bankrupt Fontainebleau casino on the Vegas Strip.
Although Penn was outbid by Carl Icahn, as the stalking horse bidder in November the company had said that they could reemerge with a higher bid before the January 14th deadline.
Penn initially offered $145 million for the stalled casino project.
Penn spokesman Joe Jaffoni said “Penn came to the conclusion there is not a lot of value to moving forward in the process.”
Completing the $3.5 billion project that is around 70% complete would require an investment of close to $1.5 billion, according to some estimates.
The top contenders for the bid will be announced by a court appointed examiner on January 19 and an auction will be scheduled for January 21, if a higher bidder has come forward.
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