Riviera CEO calls latest bid ‘credible’

The chief executive of the company that owns the Riviera on the Strip on Tuesday called a $30 per share, $374 million bid to take the company private "extremely credible."

William Westerman said the bid submitted by Ian Bruce Eichner and Dune Capital Management LP on Friday was fair because it did not seek to lock up other large shareholders and remained open to an auction process.

Eichner is behind the $2.4 billion Cosmopolitan casino resort being built farther south on the Strip.

"We consider it an extremely credible offer," Westerman told The Associated Press. "We believe they are very eligible buyers in terms of financial capability and licensing capability. They've proven that they can do the job."

The comments come after an acrimonious courtship from Riv Acquisition Holdings, which had moved to replace the board but withdrew the bid on Monday. Shareholders voted approximately 90 percent in favor of the current board at Tuesday's annual shareholders' meeting, Westerman said.

Riv Acquisition had offered $27 a share for the company, and said Monday it was considering a bid that was higher than $30.

Westerman said Riviera executives would review the Eichner group's bid on Wednesday with Jefferies & Co., which it hired to explore strategic and financial alternatives, including a possible sale of the company.

Riviera shares dropped $1.70, or 4.9 percent, to close at $33 on Tuesday.