STATIONS CASINOS SEMI SOLD / A PARTNERSHIP IN GOOD STANDING FOR THE BETTER

Implications: The real importance of this acquisition/partnership is it will allow Stations move on to a better financial position. It leaves the operating partner, the Fertitta brothers still at the helm of the company. It allows significant movement towards the completion of the properties now on the very large plate without input from stockholders.

Analysis: What does this merger mean to Stations Casinos and their major stock holders. It's a blessing for the Fertitta family that hold majority stock in Stations. They will cash out in the neighborhood of $500 million for their efforts and still remail a 25% operating partner. It will cost them some stock, but not enough to make a real difference to anyone who cares. This partnership will give Stations the financial stability it needs to complete the new properties already under way or that are in the planning stages. It also will allow the general stockholders to cash out with a good profit and make a much easier transition into a privately held company.

This was not brain surgery for the Fertitta's - it was a deal made in heaven. They now have the opportunity to try and clear their plate of all the projects now under their flag. There are many including expanding their interests with California Native America gaming. They now are partnering with one Tribe and have thoughts of building on that relationship. They are well suited for that type of endeavor as they are experts in local hotel/casino operations as proven by their Las Vegas properties. They have also expressed interest in destination type of casino resorts. They originally had this in mind for the recently opened Red Rock property. This plan had not panned out as expected, mainly because of their location. The property is about 11 miles from the strip. Since most destination guests prefer to either stay on the strip or just a block or so off, it was not practical for them to travel the extra miles each time they wished to visit the strip. The Red Rock is a beautiful hotel and could certainly take it's place on the strip - it's that type of venue.

This is a win/win situation for all concerned. It can only drive Stations to bigger and stronger profits, better employee relations and stability for the entire company. It looks, at the surface, a perfect deal for all concerned - it remains to be seen how they progress with their new partnership. It not always the same when you get married - even in business........................