Plainfield Taking Activist Stance Against Riviera
|August 13th, 2008||
|Plainfield Asset Management indicated that it wants to take an activist approach against Riviera Holdings Corp in a recent SEC filing. Plainfield, which has a 9.9% stake in Riviera, said that they wanted to talk with the management and board of the company, and that they might seek board seats or make strategy recommendations.|
Riviera ended talks with Jefferies & Co. about possible transactions in March 2008. Although Riviera said at the time that it was still in talks with RIV Acquisition Holdings, its latest 10Q suggested that those talks were not very active. RIV Acquisition offered a merger agreement in 2006 to acquire Riviera for $17, which was rejected by shareholders.
Riviera has other shareholders that might support Plainfield such as Harbinger Capital Partners with 7.7%, and D.E. Shaw which retains its 9.6% stake. In November 2007, D.E. Shaw & Co also offered a bid for the company that failed to come through.
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