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CALIFORNIA: News and Insight on Business in the Golden
State | THE STATE / GAMING

Circus Circus Chairman Steps Down

January 20, 1998|Bloomberg News

Circus Circus Enterprises Inc. said Chairman and Chief Executive Clyde Turner resigned and that the casino company will take a fourth-quarter charge of 8 cents a share to settle his employment contract. Turner, 59, led an expansion that included two casinos and the planned Project Paradise, an $800-million resort in Las Vegas. He will be replaced by Michael Ensign, vice chairman and chief operating officer, who is also one of the company's biggest investors, with about 6.5 million shares. Turner exited under pressure about how to boost the company's earnings and share price, analysts said. The company's stock fell 40% in 1997 as expansions and renovations at its Luxor and Circus Circus Las Vegas didn't improve returns on investment. Turner's departure is likely to fuel speculation that Las Vegas-based Circus Circus could be acquired, most likely by a real estate investment trust, analysts said. Circus Circus shares on Friday rose $1.50, or 6.3%, to close at $25.50 on the NYSE.

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