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Bids for Claridge Hotel
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August 23, 2000: 7:30 p.m. ET
Offers for Atlantic City Hotel may thwart Carl Icahn's plans to take control
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NEW YORK (CNNfn) - Park Place Entertainment and Black Hawk Gaming Development Inc. each submitted bids Wednesday to acquire The Claridge Hotel in Atlantic City, N.J.
The offers may fowl up plans by corporate raider Carl Icahn to take control of the property. The Claridge Hotel & Casino Corp. has issued $85 million in first mortgage notes of which Icahn owns about 42 percent.
Last year, the Claridge Hotel & Casino Corp., which own the Atlantic City hotel, filed for bankruptcy protection.
Icahn supported the bankruptcy plan that would have given bondholders 100 percent equity in exchange for notes. The bankruptcy would also have given Icahn control of the property.
But a group of dissident bondholders opposed the plan and, on August 10, the U.S. Bankruptcy Court for the District of New Jersey approved the hiring of US Bancorp Libra to seek out other investors, which could spoil Icahn's plan. Park Place Entertainment (PPE: Research, Estimates) and Black Hawk Gaming & Development Corp.'s (BHWK: Research, Estimates) bids were in response to the bondholder's efforts.
On Wednesday, Black Hawk gained 1/4 to close at 7 while Park Place rose 3/16 to 14-11/16. 
--from staff and wire reports
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Claridge Casino Hotel
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