Springfield developer and political power
broker Bill Cellini may have to pay for his shrimp cocktail next
time he boards the Alton Belle riverboat casino. Last week,
stockholders in his Argosy Gaming Co. — owner of the Belle
and five other casinos — approved the sale of Argosy to Penn
National Gaming Inc.
Cellini, chairman of Argosy, agreed to the
buyout offer, valued at $2.2 billion, in November. The vote by
shareholders on Jan. 20 marked another step toward completion of
the deal, but several state and federal regulatory agencies still
must approve. Argosy spokesman Jim Wise says the process could take
several months.
“It makes it difficult for us to narrow
down the window for when it will take place,” he says.
“We’re saying sometime in the second half of this
year.”
When complete, the deal will make the
Wyomissing, Pa.-based Penn National the nation’s
third-largest casino company. Penn National already operates seven
casinos and four horseracing tracks.
Investor’s Business Daily describes the two companies as comparable,
noting that the sale could have just as easily gone the other way,
except that Penn National is the more aggressive company.
Asked why Cellini didn’t pursue Penn
National, Wise says Cellini recognized this offer as the best return for
shareholders: “When he saw the opportunity that Penn brought
to the table, he felt it was in the best interest of his
shareholders, an offer that provided value to Argosy shareholders.
“I think that’s all he’s had
at heart, is what’s best for the shareholders.”
Cellini is among the company’s biggest
shareholders. According to Argosy’s March 2004 filings with
the Securities and Exchange Commission, he controls more than 1.3
million shares, including about 1 million in a trust for his
children. Penn National has agreed to pay Argosy shareholders $47
per share.
Cellini told the St.
Louis Post-Dispatch that the sale
was a “bittersweet” moment, “particularly to
those of us who were founders of Argosy.”
He launched the company with the Alton Belle
in 1991, the year riverboat casinos became legal in Illinois. At
one point, the stock was valued at less than $2 per share, Wise
says. Now, though, Argosy earns more than $1 billion a year in
gross revenues.
“Mr. Cellini has had enormous energy and focus for seeing this company grow, to see it be
what it has become, which is clearly one of the best casino-operating
companies in the United States,” Wise says.
Cellini is also executive director of the
Illinois Asphalt Pavement Association. For decades, his record as a
fundraiser has made him a powerful force in Republican politics.
Asked whether this departure from the casino
business might indicate that the 70-year-old Cellini is slowing
down, Wise chuckles. “I doubt it,” he says.
“I’ve seen no evidence of that so far.”
This article appears in Jan 27 – Feb 2, 2005.
