Today’s New York Post carries an article entitled ’The Trump Touch’ in which Suzanne Kapner comments, “Donald Trump has made his name negotiating gold-plated real estate deals, but when it comes to selling other goods, the tycoon doesn't always have the Midas touch.” Discontinued lines such as golf clothing and a Trump fragrance are mentioned. What is not mentioned is the far from Midas touch Donald Trump has brought to his casino enterprises.

Negotiating out of bankruptcy for the second time, the Trump casino companies have been far from gold-plated for their investors. Now renamed Trump Hotels & Casino Resorts, the three Atlantic City hotel casinos are limping along. 2006 may have been ‘a year of many significant accomplishments’ but the company is still losing money. Following a third reorganisation, the company reported last February that it expected its initiatives to yield additional positive results this year.

Just one month later, in March, Trump Entertainment Resorts hired Merrill Lynch to assist them to consider options that included its sale. First quarter results failed to reach Wall Street estimates and initially there seemed little interest from prospective purchasers. In mid-May there was an announcement that preliminary and conditional indications of interest had been received, and two bids have since been made.

The sale of the latest Trump casino company is expected to be a multi-billion deal and Donald Trump has a 31% stake. Dune Capital Management and a partnership between a real estate investor and a casino executive have both made bids. Donald Trump, as usual, will doubtless be the one who comes out best at the end of the day. In that at least he could be described as gold-plated - or Teflon-coated, anyway. (E-06.14.07)

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