Sheldon Adelson, Will He heed to the Break-up Parties?

The shares of Las Vegas Sands (LVS) closed at $44.92 as of Sept 21, 2012. LVS, the casino operator, is controlled by billionaire Sheldon Adelson. The shares of another of Sheldon’s holdings, Wynn Resorts Ltd in the Las Vegas Strip, fell by 6.8% last year. Meanwhile, MGM Resorts International dropped by a little less than 1%, while Caesars Entertainment Corp has fallen by 24% since its IPO launch in February.

Sheldon, 79, owns 424 million shares or a 52% stake of LVS, to control and direct its operations. Jonathan Litt, founder and CEO of Greenwich, Connecticut-based investment firm LandandBuildings, owns 79,600 shares of LVS as on June 30. Litt opined that Las Vegas Sands Corporation must be spilt in to three companies; shopping mall and hotel properties, with two companies leaving the casino as an independent company. LVS, with operations in Las Vegas, Pennsylvania, Singapore and Macau, China is currently undervalued at half its price. Ideally, the price per share of LVS should be $85 for its proven growth record. The split would not only boost the market value of LVS but also benefit the mall and lodging REIT as debtless ventures. A REIT is venture which focuses primarily on income generating businesses and is excused from corporate taxes, provided it ensures to distribute 90% of its income to its shareholders. Equinix Inc (EQIX), a data centre operator and Iron Mountain Inc. (IRM) have announced their plans to transform in to REIT, by this year.

Meanwhile, LVS, the Las Vegas based company, has announced of its plans and intentions to invest $2.5 billion on its fifth resort in Macau, while it also wants to develop Europe’s largest casino in Madrid. The casino controller, Adelson, has disclosed that LVS is looking forward to viable opportunities to expand its operations in Japan, Korea and Vietnam.

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