Quite a jackpot…

July 10, 2007

images-1.jpegBack on Feb. 26, Station Casinos (STN) announced that it was being taken private by Fertitta Colony Partners, a new company formed by Station’s two top executives, Chairman and CEO Frank Fertitta and his brother, Lorenzo, for $90 a share in an $8.8 billion deal. We last footnoted the Fertitta brothers in April when they filed an amended K disclosing some hefty security costs.

Yesterday, Station filed this merger proxy which spelled out exactly how much money the Fertitta brothers (and other top Station executives) will collect from the sale, assuming shareholders approve the deal next month. Frank stands to receive $148 million while Lorenzo will get $145 million. That’s based on both options (with strike prices in the $11 range) and restricted stock. Still, while the Fertitta brothers are clearly the biggest beneficiaries, they’re not the only ones to hit it big. Three top executives — Chief Development Officer Scott Nielson will receive nearly $62 million, Chief Operating Officer William Warner will get $45 million and former CFO Glenn Christenson will get nearly $52 million.

Of course, it’s not entirely clear how much of that cash will actually change hands. A separate part of the proxy talks about the Fertittas contributing their stock to a group called Fertitta Partners in exchange for Class A shares prior to the merger. And there’s another section that talks about several top executives, with the exception of Christenson, contributing to the merger by contributing some of their shares. Still, even by Las Vegas standards, it’s quite a jackpot for all involved.

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