Melco PBL Fails to Raise Much Needed Cash

Written on December 2, 2007 by Macau

Shares of Ltd. slipped Friday after an agent that planned to steer more business to the casino operator was unable to raise cash to expand its business.A-Max runs a company that packages deals on travel fare and hotel rooms into “junkets,” or paid trips that businesses offer clients. The company has an exclusive deal to offer junkets that send customers to ’s Crown casino and was poised to raise $375 million in financing Thursday night, analysts said.

That deal fell through, analysts say. Deutsche Bank analyst Karen Tang in a research report estimated the additional junkets A-Max would bring Melco through the expansion would have added $3 to $4 to Melco’s stock price.

Tang still thinks A-Max will be able to raise the cash, probably next week.

Melco’s stock slipped 51 cents, or 3.4 percent, to $14.49 Friday. The shares have traded in a range of $9.95 and $23.55 in the past year.

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Posted in Macau Business, Melco PBL

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