Investment firm bids $3.4B for resort co. Kerzner

AP News
Posted: Oct 14, 2010 10:39 AM
Investment firm bids $3.4B for resort co. Kerzner

The investment firm BMB Group said Thursday it has offered to buy resort developer Kerzner International Holdings for $3.4 billion in cash.

Kerzner is a private Bahamas-based company owned by hotel magnate Sol Kerzner. It struggled in the past few years as the weak global economy hobbled the hotel and resort industry worldwide. It laid off hundreds of employees at its resort Atlantis in the Bahamas and is undergoing debt restructuring.

Kerzner spokeswoman Jennifer Glaisek confirmed in an e-mail that the company received the unsolicited letter from BMB.

"But Kerzner is not for sale," she said.

BMB believes the company's resort properties have "significant potential," especially in Asia and it supports Kerzner's Atlantis resort in Dubai. BMB said it's unlikely it will keep Kerzner's casino assets for the long term.

BMB is an investment and advisory firm with high net-worth clients, including ruling families and sovereign investors from the Middle East and Asia.