Circus Circus Enterprises Inc. said Chairman and CEO Clyde Turner resigned, and the casino company will take a fourth-quarter charge of 8 cents per share to settle his employment contract.
Turner, 59, led an expansion that included two casinos and the $800 million Project Paradise resort being built in Las Vegas. He will be replaced by Michael Ensign, vice chairman and chief operating officer, who also is one of its biggest shareholders.
Turner exited under pressure for failing to boost Circus Circus’ earnings and share price, analysts said. Its stock fell 40 percent in 1997 as expansions and renovations didn’t improve returns on investment.
The departure is expected to fuel speculation that Las Vegas-based Circus Circus could be bought out, most likely by a real estate investment trust, analysts said.
REITs, which typically own properties such as hotels and office buildings, in recent months have shown an interest in buying casinos.
