Appeal Filed To Block Trump’s Offer On Resorts
ATLANTIC CITY, N.J. (AP) _ The brother of the late founder of Resorts International Inc. has filed an appeal aimed at blocking developer Donald Trump’s $79 million purchase of controlling interest in the gaming company.
Few details are known about Peter F. Crosby’s appeal, filed in a one-page document in Circuit Court in Miami last week.
Crosby’s attorney, George Esposito of Fort Lauderdale, Fla., has 70 days to file a brief outlining his arguments. Esposito was in court Wednesday and could not be reached for comment.
Trump has proposed paying $135 a share for Resorts’ Class B stock, which has 100 times the voting power of the Class A shares. Trump’s offer focuses on about 390,000 shares of stock from the estate of the late Resorts Chairman James M. Crosby and all Class B stock owned by a number of Crosby’s relatives, or another 585,000 shares.
Trump’s proposal already has been approved by the state Casino Control Commission and by Florida Probate Judge Harold Featherstone, who is overseeing the outcome of Crosby’s estate. The purchase is expected to close July 21.
Peter Crosby, 63, could not be reached for comment, but his wife, Suzanne, said her husband filed the appeal ″probably because he felt there would be a higher offer.″
″It wasn’t a vindictive kind of thing,″ she said Wednesday from her home in Carey, Ill.
Peter Crosby, however, had not been given a direct role in determining the future of the Resorts’ company. When James Crosby died last year, his will divided stock evenly among his two sisters and two of his three brothers.
Peter Crosby, convicted in 1960 of mail fraud, received a trust fund from his late brother, but James Crosby gave the power to control it to other Crosby family members.
Trump’s offer already has been unsuccessfully appealed by a group of investors that made a higher offer. The New Jersey Five Trust Ltd. offered $210 a share for the Class B stock.
Jeffrey R. Gans, a Gibbsboro attorney representing the New Jersey Five Trust Ltd., said Crosby was not affiliated with the group.
″He may have emotional ties with us in that he wants the best offer,″ Gans said Wednesday. ″I would like to see Mr. Crosby’s appeal win because we do have the best offer.″
Trump’s total offer is worth about $79 million and would give Trump 73 percent of the company’s voting power. Trump already owns two of Atlantic City’s 12 casinos.
Except for Peter Crosby, the Crosby family has supported Trump’s proposal, citing his experience in completing difficult projects. Resorts’ Taj Mahal casino hotel, currently under construction in Atlantic City, is already over its estimated $525 million cost.
Resorts also owns an existing gaming establishment in Atlantic City and another in the Bahamas.