SOMMER-ALADDIN DEAL

The Sommer Family Trust signed over the bulk of its 57 percent interest in

the financially troubled Aladdin early Tuesday in London, paving the way for

the sale of the megaresort or the addition of new investors.

The deal, which saw no money change hands, would give Aladdin co-owner

London Clubs International control of 85 percent of the Aladdin.

Nevada gaming regulators and bankers for the two companies must approve

the transaction.

“They’re in a better position to negotiate with other parties,” said Luke

Morton, a British public relations executive who represents London Clubs.

“Obviously, they’ve got more of a holding to dispose of. Yes, it streamlines

the process.”

London Clubs, which owned 40 percent of Aladdin Gaming, received the bulk

of the family trust’s Aladdin interest in return for the $199 million the

British company had already sunk into the 11-month-old hotel-casino.

The Aladdin has struggled as a standalone hotel-casino on a Strip

dominated by multiproperty companies that possess deep customer lists and

lucrative cross-marketing opportunities.

The on-again, off-again deal was struck at about 4 a.m. London time, with

momentum for the transaction increasing “very rapidly” during the last few

days, Morton said.

London Clubs  Pengeluaran SGP and Sommer Trust were facing an early morning deadline, which

saw them file the British company’s yearly financial statement with the

London Stock Exchange.

The change of ownership was revealed in that document.

“This equity restructuring will enable LCI to pursue discussions with third

parties who have expressed interest in the Aladdin project and should enable

us to significantly reduce our existing level of investment,” according to

the filings.

The transaction followed the Monday resignation of London Clubs Chairman

Alan Goodenough, who shepherded the company’s investment in the Aladdin and

its entry into the Las Vegas casino market.

Goodenough quit citing poor personal health, which British newspapers have

characterized as heart troubles caused by the daily stresses of dealing with

the Aladdin’s troubles.

“I am disappointed that my poor health has obliged me to step down from

the board,” Goodenough wrote in a chairman’s statement that accompanied the

London Stock Exchange filing. “I have enjoyed working with my board

colleagues enormously, and I am personally grateful for their efforts and

hard work at a time when my own contribution has been restricted by

illness.”