Trump Entertainment (TRMP) said Monday that it was unable to find an attractive buyout offer, sending shares plunging 18% in early trading.
Trump, which owns three casinos in Atlantic City, said its recent review of "strategic options" resulted in no sale offers that would have been in the best interests of shareholders. As a result, the company is concluding the review process.
The news is particularly unwelcome to investors since the company recently announced the
resignation of Jim Perry, the chief executive who turned around the company after it exited from bankruptcy in 2005.
Several shareholders had seen Perry's departure as a sign that a sale was in the works. Now, the lack of a deal could signal that Perry's resignation was for some other reason, like the difficulty of turning Trump into an ongoing profitable company.
The company last year reported a loss of $18.5 million as it continues to spend heavily on capital expenditures to update its aging Atlantic City casinos.
This year, operating results have been hurt by the introduction of slot machines in nearby Pennsylvania and New York, along with a new limited smoking ban in Atlantic City casinos.
Trump shares fell $2.27, or 18%, to $10.31 in early trading Monday.