UPDATE 4-Kerzner gets unsolicited $3.4 bln bid from BMB Group

* Brunei investment firm makes offer for resort operator

* Kerzner has worked with Blackstone on debt restructuring

* Company “not up for sale”, Kerzner executive says
(Adds comments from Kerzner executive, previous NEW YORK)

NASSAU, Oct 14 (BestGrowthStock) – Brunei investment firm BMB Group
said on Thursday it had made an unsolicited $3.4 billion cash
bid to buy Kerzner International Holdings, but the luxury
resort operator said it was not for sale.

Kerzner, which operates its flagship Atlantis casino resort
on Paradise Island in the Bahamas, hired private equity firm
Blackstone Group (BX.N: ) in June to help address the
restructuring of about $3.2 billion in debt. [ID:nN16108811]

George Markantonis, President of Kerzner International’s
Bahamas subsidiary, confirmed that the company had received an
“unsolicited” offer letter, but he told Reuters:

“We’re not up for sale … and really that’s all there is
to the story at this time. For us, it’s business as usual.”

Markantonis said that while Kerzner did receive business
offers from time to time “normally … such conversations take
place behind closed doors”.

“So, I’m a little bit surprised that this (BMB offer) came
straight out of the press,” he said. But he declined to
speculate why the offer was made, and why in this fashion.

The unsolicited bid was “not going to change anything about
how we do our business daily”, Markantonis said.

BMB, an investment and advisory firm backed by the Brunei
royal family and a shareholder in Kerzner, said it was “highly
supportive” of the company’s newest Atlantis resort in Dubai.
However, it said it was unlikely to retain long-term ownership
of Kerzner’s casinos.

Bahamas’ government declined to comment on the offer.

Kerzner is owned by a consortium of investors led by its
chief executive officer, Sol Kerzner, who took the company
private in 2006. Others investors in the deal included Dubai’s
Istithmar PJSC, Colony Capital LLC and Providence Equity

Representatives for BMB and Blackstone could not
immediately be reached for comment.

Kerzner International’s operating income fell by 15 percent
last year on a drop in tourism stemming from the global
financial crisis.

BMB said it had built a multibillion-dollar real estate
business through the acquisition of Contrarian Capital Partners
and Alliance Capital Group, which have assets of more than $4.5

The bid was made by its BMB Advisors Malaysia Ltd
(Reporting by Neil Hartnell, Phil Wahba, Soyoung Kim and Deena
Beasley; Editing by Pascal Fletcher and Bernard Orr)

UPDATE 4-Kerzner gets unsolicited $3.4 bln bid from BMB Group