Majestic Research

Bloomberg

Trump Resorts Shares Climb on Report It May Be Sold

By Oliver Staley
Published: March 09, 2007

Shares of Trump Entertainment Resorts Inc. rose the most in four months after CNBC reported the casino and hotel company may have hired bankers to explore a sale.

The shares jumped $1.34, or 8 percent, to $18.19 at 4 p.m. New York time in Nasdaq Stock Market composite trading. It’s the largest intraday increase for the Atlantic City, New Jersey- based company since October.

Buyout firms and other casino companies may be attracted to Trump because of its three Atlantic City properties and the cash flow generated by gambling, said Matt Jacob, a casino analyst at Majestic Research in New York. In the last year, Aztar Corp., Station Casinos Inc., Kerzner International Ltd. and Harrah’s Entertainment Inc. have been taken private.

“Investors realize there’s a lot of value to be had,” Jacob said. “Any company that’s still public, especially ones that have not performed as well as their peers, would be attractive.”

Messages left with Trump spokesman Tom Hickey weren’t immediately returned.

Shares of Trump have risen 30 percent since the company emerged from bankruptcy on May 20, 2005.