Boyd Gaming Discontinues Efforts to Acquire Station Casinos Assets

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Jul 30, 2010, 05:00 ET

LAS VEGAS, July 30 /PRNewswire-FirstCall/ -- Boyd Gaming Corporation (NYSE: BYD) today announced it will no longer pursue the acquisition of certain assets of Station Casinos (the "OpCo assets").

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"Over the last eighteen months, we have devoted significant resources in our attempt to acquire the Opco assets of Station Casinos. Unfortunately, given bidding procedures that favor Station insiders, and our current view of the limited potential value of the operating and development assets, we have concluded this opportunity no longer makes sense for our company," said Keith Smith, President and Chief Executive Officer of Boyd Gaming.

Boyd Gaming noted numerous provisions in the approved bidding process that made it difficult for qualified bidders to compete for the assets on a level playing field, including, among other things:

A put option that would force an outside buyer to acquire the currently leased land under Texas Station for $75 million, a requirement that would not apply to Station insiders;
Provisions which allow Station to transfer certain crucial assets from the OpCo assets prior to their sale, including customer lists and IT infrastructure, without adequate compensation; and,
Station's right to hire away any or all employees and executives of the OpCo assets prior to their sale, regardless of their strategic role, at Station's sole discretion.

"Boyd Gaming remains committed to growth, however, we will only pursue transactions that are financially sound, fit well with our existing business, and offer attractive long-term returns for our shareholders. Clearly, this opportunity no longer meets these criteria," Smith said.

About Boyd Gaming

Headquartered in Las Vegas, Boyd Gaming Corporation (NYSE: BYD) is a leading diversified owner and operator of 16 gaming entertainment properties located in Nevada, New Jersey, Mississippi, Illinois, Indiana, and Louisiana. Boyd Gaming press releases are available at www.prnewswire.com. Additional news and information on Boyd Gaming can be found at www.boydgaming.com.