Last week’s winning bid of $110 million for the Revel Casino that went to Brookfield Asset Management will be challenged by the losing bidder.
Glenn Straub, whose initial $90 million offer set the tone for the bidding war, is not pleased with the way the auction was conducted and plans to voice his objections at a court hearing set for Tuesday, October 7 in New Jersey. The Florida-based developer claims the entire auction was done improperly, from start to finish
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Among Straub’s complaints are that Revel lawyers failed to provide timely information on other bids, that Brookfield’s bid was accepted after the deadline was announced, and that meetings behind closed doors that lasted six hours on day one of the auction were not in accordance with proper auction procedures.
Although Straub is due to receive $3 million as part of an agreement that included the provision should he not be the winning bidder, the polo enthusiast is apparently still in the running to become the Revel’s new owner. His attorney told the AP that Straub may top the $110 million bid of Brookfield at tomorrow’s hearing.
The judge has the authority to accept a higher bid. Both Revel and Brookfield representatives chose to remain silent when told of Straub’s objection plans, and it is yet unknown if the latter is prepared to offer a higher bid should Straub do so.
Brookfield operates casinos in Las Vegas and the Bahamas and it is likely that casino gambling will be the cornerstone of its plans for the Revel. Straub has indicated that his blueprints for refurbishing the Revel also include casino gambling, but to a somewhat lesser degree.
After an investment of $2.4 billion was made prior to the Revel’s grand opening in 2012, whatever the winning bid turns out to be will certainly be a bargain. However, the casino failed to profit in its two years of existence, landing in bankruptcy court twice.
The Revel closed early in September and was one of a handful of Atlantic City casino closings in 2014. That prompted Gov. Chris Christie to call a summit of business leaders and legislators one week later to come up with a new plan for New Jersey’s gaming industry.
