| Author
|
Post |
 
|
|
Steve Myers
Site Admin
|
Neither side is talking about a casino co-ownership proposal - which was set to expire earlier this week - that Flint Mayor Don Williamson offered to an Indian tribe.
Williamson in March announced a private business offer to the Sault Ste. Marie tribe of Chippewa Indians to jointly develop a 200,000-square-foot casino with Sports Resorts International Inc., which is based in Shiawassee County. He owns more than 95 percent of Sports Resorts' stock.
The proposal, detailed in a news release, said the tribe would acquire 30 acres of Sports Resorts land at the northeast corner of Mt. Morris Road and I-75 in Mt. Morris Township. The tribe would operate and own the casino and participate in development of a 500-room hotel and 80-store shopping center.
But to do so, the tribe would have to buy 12.1 million shares of Williamson's Sports Resorts stock for nearly $40 million, based on its March 13 $3.30 per share closing price.
A tribal spokesman Thursday said the tribe had no comment on the proposal.
Williamson would not confirm whether the tribe had accepted or rejected on the deal.
"There's no information at this time I want to put out on that," he said Thursday, the day the agreement was to expire.
In March, the tribe said in a statement that it hadn't seen a proposal and "at this time is pursuing gaming opportunities in other geographic areas."
But with Sports Resorts' stock price having fallen by nearly $2.50 since the March proposal to less than $1 today, a Flint Township financial adviser is skeptical the tribe would bite on Williamson's offer.
"The Indians would be crazy to do that," said R.J. Kelly III of Raymond James & Associates in Flint Township.
Within the past year, Sports Resorts stock was trading as high as $4.75 a share on the Nasdaq stock market.
"We're thinly traded and sometimes activity in the marketplace can have a fairly dramatic affect on our stock price, even if it's not heavily traded," said Greg Strzynski, Sports Resorts' chief financial officer.
Kelly said investors may be reacting to Sports Resorts' first-quarter loss of $642,130 or its $1.4-million revenue drop compared to a year ago.
Some of the price fallout may stem from a March proposal by Williamson to spin off two publicly traded companies from Sports Resorts, thus giving shareholders stock in three companies and costs to sell three stocks, Kelly said.
Strzynski said there has been no board vote on the spin-off proposal.
Sports Resorts, which has 232 shareholders, has three subsidiaries: the Rugged Liner, which makes truck accessories near Owosso; a racetrack near Brainerd, Minn.; and a gas station/convenience store near the track.
Full Story:
http://www.mlive.com/news/fljournal/index.ssf?/base/news-30/112030862620690.xml |
|
|
Sat Jul 02, 2005 9:05 am |
|
|
|
FAQ
Search
Memberlist
Register
Profile
FlintTalk.com Forum Index
> Political Talk
