Printer Friendly

LAACO LTD. ISSUES STATEMENT

 LOS ANGELES, May 4 /PRNewswire/ -- A story in the Sunday, May 2 editions of The Los Angeles Times about the 1988 sale by LAACO Ltd. of the Riviera Country Club contained several important factual errors. LAACO has contacted the Times, asking for a correction and has informed its editors of the following:
 As a publicly owned company with a reputation for ethical dealings based on more than a century of operations and business relationships in Southern California, LAACO is deeply distressed at the innuendoes created by the Times article, whether intentionally or inadvertently, that LAACO's sale of the Riviera to Marukin Shoji has somehow made it a party to alleged wrongdoing by public figures in Japan.
 Following publication of the Times article, LAACO contacted the U.S. Government Agency conducting the investigation reported by the Times. A federal law enforcement official stated that LAACO is "absolutely not" under investigation or the target of any investigation.
 The Times article, using phrases such as "murky circumstances" and "secrecy surrounding the deal," implies that the transaction was conducted in unusual or unseemly secrecy. This is untrue. The negotiation and sale of the Riviera Country Club was an arms-length transaction, fully disclosed even before it was consummated.
 As with any major business transaction, the Riviera sale required complex and lengthy negotiations to address hundreds of terms and conditions. The need to use interpreters also slowed the process. Contrary to proceeding in secrecy, we made a public announcement early on, when we reached a general agreement in principle in May of 1988, rather than waiting for a final agreement. This was done because our attorneys felt that the very material financial impact of this transaction on LAACO made early disclosure appropriate. Additional thousands of hours were then spent in further negotiations and in drafting legal documents until the agreement was finalized in September of 1988, whereupon yet another announcement was made. The innuendoes construed by the Times are totally without foundation and irresponsible.
 The Times article questioned the justification for "the total price of $108 million" paid for the Riviera property. This transaction occurred at a time when both the California real estate market and the Japanese economy were at record highs. Exceptional prices were being paid by Japanese purchasers for "trophy" properties all across the United States. In addition to its fame, the Riviera property includes 168 acres of prime real estate in the heart of Pacific Palisades, one of Los Angeles' most desirable neighborhoods. If viewed as raw land which potentially could be rezoned and subdivided as home sites, the price paid was consistent with the land value. Furthermore, as noted in the article, Marukin's plans included using the Riviera name for other real estate developments. The acquisition therefore included a significant "brand name" value to the buyer.
 Marukin came to LAACO represented by competent and well-respected American attorneys and accountants. LAACO, too, was represented by two major law firms. A Los Angeles escrow company was used, and standard closing procedures were followed.
 Marukin has lived up to its commitment to honor existing memberships at Riviera and to care for and improve Riviera consistent with its tradition as one of the finest golf courses in the world.
 We respect the Times and its right to report the news, but its May 2 article is unbalanced, historically and contextually distorted, and contains innuendoes unsupported by the facts.
 -0- 5/4/93
 /CONTACT: Alex Auerbach of Alexander Auerbach & Co., 818-501-4221, for LAACO/


CO: LAACO Ltd. ST: California IN: SU:

MS-LS -- LA054 -- 4640 05/04/93 20:32 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 4, 1993
Words:593
Previous Article:APPLE BUILDS MOMENTUM FOR MULTIPROTOCOL REMOTE ACCESS PRODUCTS
Next Article:CIGNA STATEMENT IN RESPONSE TO THE HOSPITAL ASSOCIATION OF NEW YORK'S (HANY) EFFORT SEEKING FINANCIAL PENALTIES AGAINST CIGNA


Related Articles
LAACO ANNOUNCES VERDICT IN DISPUTE WITH RAPID TRANSIT DISTRICT
LAACO REDEEMS INTEREST IN DRS LTD. PARTNERSHIP
LAACO SAYS DRS HAS PREPAID $3.2 MILLION NOTE ON EASTWOOD DEVELOPMENT IN FLORIDA
LAACO to Create New Corporate Subsidiaries for Athletic and Yacht Club Operations
LAACO, Ltd. Announces Lease and Purchase-Option Agreement for 10 Self-Storage Properties.
LAACO, Ltd. Announces Extension of Option Agreement For Sale of Topanga Property to American Land Conservancy.
LAACO, Ltd. Announces Commencement of Operations of 10 Self-Storage Properties.
LAACO, Ltd. Announces American Land Conservancy Will Exercise Its Option For Purchase of Topanga Property.
LAACO, Ltd. Announces Key Approval in Topanga Property Transaction.
LAACO, Ltd. Recommends That Unitholders Reject Mercury Tender Offer.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters