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Strategies & Market Trends : Joe Copia's daytrades/investments and thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Joe Copia who wrote (16414)	6/9/1999 7:53:00 PM
From: pitchlyn	Read Replies (1) \| Respond to of 25711

More PKDV info to chew on: lasvegassun.com March 03, 1999 Mystery firm bids for Desert Inn By Gary Thompson <gary@lasvegassun.com> LAS VEGAS SUN A publicly traded firm linked to Taiwanese business interests said it joined the bidding for the Desert Inn. Pan Kai Development U.S.A. Inc. said it offered about $360 million to Starwood Hotels & Resorts Worldwide to buy the newly renovated Strip resort. Pan Kai's announcement said it "will raise the funds via an underwriting and private placement offering," with EquiTrade Securities of Lake Forest, Calif., acting as lead underwriter. A recording at Pan Kai's Walnut, Calif., phone listing said today voice mail services weren't available at that number. An EquiTrade official provided no information about the purported offering. "Due to the fact that it's still ongoing," said Kim Carroll, a compliance officer at EquiTrade Securities, "I don't feel comfortable releasing any information at this time." Carroll declined to say whether EquiTrade has financed any similarly sized transactions. *"I can confirm Pan Kai is a bona fide bidder* and is one of several companies we continue to talk to,"** Starwood spokesman Jim Gallagher said today. Pan Kai's announcement said the company's shares are traded on the Nasdaq over-the-counter bulletin board. The stock last traded at $2.75 a share on Feb. 25. EquiTrade wouldn't divulge the number of shares outstanding, so the market capitalization of Pan Kai couldn't be determined. The announcement said Pan Kai owns 48 percent of Pan Chaio Development Enterprise Co. Ltd., a publicly traded, Taiwan-based business involved in "property development, consumer-related super-store outlets, commercial and residential developments, cement plants and appliance manufacturing." According to Pan Kai, it plans to redevelop the Desert Inn into a resort catering to "the local Chinese community and the Chinese business traveler." The renovations will include a 4-mile long replica of the Great Wall of China* and a "Chinese City"* that will require 180 acres of land on the Strip, Pan Kai said. "These requirements make the Desert Inn the leading acquisition candidate," according to the announcement. Starwood has had the Desert Inn on the market for more than a year and is asking $325 million to $375 million for the resort. Despite a $200 million renovation and upgrade, the 750-room hotel-casino and 18-hole golf course hasn't generated any significant cash flow in recent years. Among others interested in buying the resort are a group headed by entertainer Michael Jackson and Detroit businessman Don Barden, and another partnership including designer Mark Advent, who wants to build a San Francisco-themed resort on the Desert Inn acreage. ------------------------ ...and the plot thickens!