77
Chinese takeaway
at Venetian?
Las Vegas Sands has announced that four companies
are interested in buying The Venetian Macau
T
HEIR identity has not been disclosed, Sheldon Adelson remains optimistic, saying
but according to the local press, among that at least 19 companies have already shown
the buyers are two well-known Chinese interest in the Macau shopping areas.
building companies with no presence in The financial difficulties don´t seem to be
Macau. affecting the earnings of new chief operating
If a deal can be struck, the companies officer Michael Leven, who is set to pick up a
will advance the cash and restart construction US$2 million annual salary plus a perform-
work on lots 5 and 6 on the Cotai Strip, where ance-related bonus.
Sheraton Macau and other hotels are being
built. all change
The other two groups interested in The
Venetian are known to be based in Hong Kong. And as financial problems within LVS
For Beijing, the conclusion of this business hit the headlines, the company announced the
would be a way of increasing Chinese partici- third departure of an executive this month.
pation in the gaming industry of Macau. Executive vice-president Bradley Stone
Chairman Sheldon Adelson confirmed to was a 13-year veteran of the firm who served
Agence France Press news agency that he and as president of global operations and construc-
the new president and chief operating officer, tion.
Michael Leven, had been in China to negotiate Administrator James Purcell also depart-
the sale of The Las Vegas Sands share in The ed Las Vegas Sands, but the most talked about
Venetian Macau. was president and chief operating officer, Wil-
liam P. Weidner.
The ghost of bankruptcy Saying he had had enough of “junkyard”
fights with chairman Sheldon Adelson, Wei-
Meanwhile, Las Vegas Sands said it is ne- dner left to be replaced by Michael Leven, a
gotiating with its lenders for permission to buy professional in the hotel and tourism sector,
back up to US$800 million in debt. The ca- who has been in the company since 2004 but
sino developer said it was in discussions with who has no previous experience in the gaming
a syndicate of banks to pay down a US$5 bil- industry.
lion credit facility it secured in 2007 to fund In his letter of resignation, released by the
projects in the United States. Should the com- company, Weidner said: “I have had, and con-
pany launch a debt buy-back, it would help it tinue to have, outstanding differences with the
comply with its loan covenants. chairman and chief executive officer about the
But the fear of bankruptcy lingers. management of the company.”
Las Vegas Sands is at risk of failing to The new man is expected to solve the
make payments on the accumulated debts in company’s financial problems through the
the US and Macau. planned sale of its two shopping areas on the
Credit risk evaluator Standard & Poor’s Cotai Strip and further cost cuts.
downgraded the company from B to B-minus, In an interview with Newsweek, Adelson,
rating it vulnerable and at risk as the global said he was optimistic about investments in
economic meltdown continues. The risk-rating the region: “We’re still planning a new Cotai
agency says LVS may fail to make payments Strip in Macau.”
on the accumulated debts by September, un- He is hopeful that the government will lift
less it succeeds in selling assets like shares, travel restrictions to Macau for Guandong res-
the Venetian “Grand Canal Shoppes”, the Four idents, adding, “China has got a big stimulus
Seasons’ flats and its commercial mall. package, and they control the country. Unlike
Standard & Poors’ report supports ear- here in the U.S., 50 percent of the enterprises
lier analysis that LVS could go bankrupt by are still owned by the government in China, so
2010. Things may be looking shaky but CEO they can turn things around on a dime.’’
april 2009
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