Quantcast
Home manage Las Vegas Review-Journal
  Jobs Cars Homes Shopping Travel Weddings Golf Best of Las Vegas Photo   Search:

RECENT EDITIONS
Sat Sun Mon Tue Wed Thu Fri

sponsored by
Business


Stock price dip wreaks havoc on net worth of LV Sands Corp.'s chief exec

A New York compensation consulting firm estimated the net worth of Las Vegas Sands Corp. Chairman and Chief Executive Officer Sheldon Adelson has fallen by more than $16.6 billion this year, the largest amount of any of the major CEOs tracked by Forbes magazine.

Adelson, 75, controls a little less than 70 percent of Las Vegas Sands Corp. personally and through family trusts. Forbes ranked Adelson as America's third-richest person last year, but dropped him to 15th place earlier this month based on the declining stock price of Las Vegas Sands.


Most Popular Stories
  • Fraud with Portent
  • Debt-ridden casino operators told to expect pressure
  • REAL ESTATE: Las Vegas home prices stabilize as threat of foreclosure flood wanes
  • GAMING COMPANY EARNINGS: Station drops $455.4 million
  • THE STRIP: License backed for Aria
  • THE STRIP: License approved for Aria
  • GLOBAL GAMING EXPO: Recession over? Don't bet on it
  • Union wants insiders to help pull Station from bankruptcy
  • Foreclosure wave continues
  • INSIDE GAMING: Missouri outburst hurts Lee, Pinnacle




  • "He's in the gaming business. He's gamed it all the way up and down," Pearl Meyer, a senior managing director of Steven Hall & Partners told ABC News. The company tracked Adelson's investments in Las Vegas Sands between Dec. 31 and Oct. 17.

    Las Vegas Sands' stock price hit a high of $148 a year ago. On Tuesday, shares of the company closed at $4.95 on the New York Stock Exchange, down 85 cents or 14.66 percent.

    While Adelson's net worth on paper has fallen, financial sources estimate he has some $3.5 billion in available funds from other investments.

    The investment losses by Adelson topped those of fellow CEOs Warren Buffett, Rupert Murdoch, Steve Ballmer, Larry Ellison and Jeff Bezos. After Adelson, Buffett, chief of Berkshire Hathaway, lost the most, nearly $9.6 billion.

    Adelson loaned Las Vegas Sands $475 million on Oct. 1 through convertible senior notes to help the company meet liquidity requirements and avoid the triggering of a $5 billion loan covenant. On Friday, the company announced he would participate in a capital-raising program.

    "It doesn't impact the company directly and it doesn't impact the wherewithal of the company," Deutsche Bank gaming analyst Bill Lerner said of the decline in the value of Adelson's net worth. "We suspect the Adelson family has additional liquidity that we would anticipate being used in part to aid the equity in Las Vegas Sands going forward."

    Adelson founded the company and took it public in December 2004 at a value of $794 million. In March 2006, Adelson and his family participated in a secondary stock offering, selling 55 million shares at a set price of $50.25. The proceeds netted Adelson more than $2.76 billion, the largest common stock offering ever in the gaming sector.

    Despite the drop in Las Vegas Sands' stock price, Lerner said the company is not a hostile takeover target. Adelson's controlling stake could block any unfriendly offer.

    Meanwhile, analysts await the company's third-quarter earnings release. No date has been set. Some on Wall Street wonder if moves will be undertaken to shore up the company, such as halting or slowing some of the company's massive construction projects in Asia, including $12 billion on the Cotai Strip and the $4 billion Marina Bay Sands in Singapore. Las Vegas Sands is spending $675 million on a casino in Bethlehem, Pa., and $600 million on a Strip high-rise condominium project.

    Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.

    Newsvine Digg Fark Technorati reddit StumbleUpon del.icio.us Slashdot Propeller Mixx Furl Twitter MySpace Facebook Google Bookmarks Yahoo! Bookmarks Windows Live Favorites Ask MyStuff myAOL Favorites

    Leave Your Comment 21 Reader Comments
    Terms & Conditions
    The following comments are provided by readers and are the sole responsiblity of the authors. The reviewjournal.com does not review comments before publication nor guarantee their accuracy. By publishing a comment here you agree to abide by the comment policy. If you see a comment that violates the policy, please notify the web editor.

    Some comments may not display immediately due to an automatic filter. These comments will be reviewed within 48 hours. Please do not submit a comment more than once.
    Current Word Count:

    Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background.

    bighitter wrote on October 31, 2008 01:50 PM: I used to work for that greedy old man. He doesn't know anything about gaming it is his right hand people that take care of the gaming aspect. He know about the convention aspect. I have a tale to tell. Around 3 years ago adelson and his execs gave themselves a $115 million bonus for getting the financing secured for the company that was buying the ventian mall and 3 weeks later on Thanksgiving the swing and grave shifts didn't get any turkey to eat in the employee dining room because it ran out of turkey. The sign put up in the e.d.r. said, due to unforseen circumstances we have run out of turkey. That was up at 3pm on Thanksgiving day. They were spending the money on leasing a Rolls and buy his new bomb proof Mercedes.


    patrick wrote on October 29, 2008 09:48 PM: Adelson huh?

    Nice to see the roosters coming home to roost for the man.

    You shall reap what you sow. And so he is, wonder how he feels about bush and the rest of his republican buddies now; course if he thinks the way some of the minions of bush do on this board, he's still thinking this is all Monica Lewinskis fault.

    LOL

    Idiots


    AP wrote on October 29, 2008 08:45 PM: Sad-

    If the Venetian/Palazzo weren't there, then another casino group would be so don't act as if they save the lives of the residents of Nevada.

    Adelson is morally bankrupt ans soon will be financially as well.


    Sad Summerlin wrote on October 29, 2008 03:56 PM: For all you Adelson bashers out there... how many jobs do you think this man's company provides for Las Vegas residents?

    How much tax revenue does LVS provide Nevada?

    Guess it is just easy to be bitter and envious than actually look at reality...

    And to "Dave"... really? Are we still antisemitic in 2008? REALLY? Go burn.


    voter wrote on October 29, 2008 03:49 PM: If u hate Adelson, vote Obama... America is gonna give Obama 1 chance to destroy our economy and I know Obama is capable of doing it! You just better hope that he last all four years, because if u ask me... he will be our first black president, yes, but he will also be our first impeached black president. That would make 2 in a row for you democrats...lol And a pretty bad track record overall when you throw in Carter.


    Dave wrote on October 29, 2008 03:01 PM: adelson will make out just fine,guys like him always do

    Don't you mean Jews like him?


    hilobamacaine wrote on October 29, 2008 12:32 PM: adelson will make out just fine,guys like him always do


    Joey wrote on October 29, 2008 11:36 AM: $16B? Ha! Ha! Couldn't have happened to a nicer guy - lol.


    Traval wrote on October 29, 2008 11:20 AM: Adelson and or Sands Corp isnt going anywhere:

    "It doesn't impact the company directly and it doesn't impact the wherewithal of the company," Deutsche Bank gaming analyst Bill Lerner said of the decline in the value of Adelson's net worth. "We suspect the Adelson family has additional liquidity that we would anticipate being used in part to aid the equity in Las Vegas Sands going forward."

    He's down but certainly not out. If you hippies commenting below would STOP bit**** and moaning and instead open your eyes and realize that right now the getting is good you probably wouldn't be such buzz kills.


    Rick wrote on October 29, 2008 10:36 AM: Jim,

    I second your opinion on Adelson. I recall when he refused to pay numerous contractors when the 1st. tower went up and then said he owned the public sidewalk in front of the casino.

    Buffett is a highly respected man who is giving all ( except a few million for his children I believe ) of his money to charity.

    Adelson needs to have security guards around him with Uzi's... Wonder why??


    Read All Comments