Trump May Cash In His Chips Developer Hires Investment Banks To Seek Bids For Three Atlantic City Casinos

Donald J. Trump, the real estate developer who has a sizeable stake in three Atlantic City casinos, says he may cash in his chips on the gambling houses - for the right price.

Trump confirmed Friday that two investment banks have been hired to seek bids for Trump Hotels & Casino Resorts Inc., the public company that controls his casino holdings. Trump owns nearly 40 percent of the company’s stock.

“The company is doing very well and I think we can get a good price,” Trump said.

Analysts also said Trump faces the prospect of fierce competition from industry giants who are planning mega-resorts in Atlantic City if he keeps his properties there.

Based on Friday’s price of Trump Hotels stock, the company would be valued at about $440 million.

Trump has been a major player in Atlantic City since the mid-1980s and his three casinos there account for nearly 30 percent of the winnings of the 12 casinos. In 1997, the Trump properties kept $1.17 billion after paying all bets but before paying expenses.

Why consider selling now?

“We have a great company, and we always look to increase shareholder value. And if we get the right price, we would be interested in selling,” Trump said in a brief interview.

Trump has retained Donaldson Lufkin & Jenrette Securities Corp. and Bear, Stearns & Co. to market the company, he said, confirming a story first reported in Friday’s editions of The Wall Street Journal.

He would not comment on what price he wants.

But the Journal, citing “people familiar with the plans,” said Trump is hoping to find a buyer willing to pay as much as $27 or $28 a share, giving the company a value of about $1.1 billion, not including $1.7 billion in debt.