Wellington (Reuters) - New Zealand casino operator Sky City Entertainment Group Ltd, which has put itself up for sale, said on Wednesday it had been told by a potential buyer that a compelling offer may be made soon. Sky City, which analysts say could fetch up to USD 2.2 billion, said one party that had been conducting due diligence was interested in pursuing a deal but not yet in a position to to make an offer.

(Bloomberg) -- Sky City Entertainment Group Ltd. fell the most in nine months on New Zealand's stock exchange after a newspaper reported a single bidder is interested in the country's biggest casino operator. U.S. private equity firms TPG Newbridge Capital and Apollo Management LP are the only group to have assessed Sky City's accounts by a deadline this week, the New Zealand Herald reported.

New Zealand casino operator Sky City Entertainment Group confirmed its full-year profit guidance and said it had halted the possible sale of one its casinos pending the outcome of a takeover process. The company said on Friday it was still comfortable with its previously announced forecast of a net profit of between NZD 108.2 million and NZD 110.2 for the year to June 2008, compared with a net profit NZD 98.4 million in the previous year.

New Zealand casino operator Sky City Entertainment Group sees the possibility of more than one bid, as a potential buyer looks at its books over a deal that could be worth around 1.9 billion. Executive Director Elmar Toime told Reuters on Friday that the unnamed bidder's decision to conduct due diligence could spark other bids. "The interest is there, whether the timing is right, or people have the wherewithal is the great unknown," Toime said.

Shares in Sky City Entertainment Group made strong gains on the share market today, after the company said a potential buyer was trawling through its books. The New Zealand-based gaming and cinema firm said it would also see if any other parties were interested in taking over its business, as the potential buyer conducted due diligence. At 11.09 AEST, Sky City shares were up 26 cents or 6 per cent to USD 4.59.

TPG Newbridge, one of the world's biggest private equity funds, seems set to emerge as SkyCity Entertainment Group's mystery suitor. TPG Newbridge consists of Texas Pacific Group and its Asia-Pacific affiliate Newbridge Capital. TPG is already busy building a major position in the international casino sector. With partner Apollo Management, it is set to complete the USD 27.8 billion (NZD 37.4 billion), or USD 90 a share, all-cash buyout of Harrah's Entertainment by the end of the year.

Providence Equity Partners has looked at buying SkyCity Entertainment. But the US based private equity firm says its tentative interest doesn't meet SkyCity's definition of a potential takeover. A source close to Providence confirmed it had considered SkyCity "as we do with all the deals that are out there". But the level of interest fell short of SkyCity's declaration to the NZX on Friday - a brief note that sent the SkyCity share price soaring and added more than [[NZD]] 400 million to the value of the casino company.

(Bloomberg) -- Sky City Entertainment Group Ltd. headed for a record one-day gain on New Zealand's stock exchange, valuing the nation's largest casino operator at about USD 1.8 billion, after saying it received a takeover offer. The price indicated by the suitor, which Sky City declined to name, would be a "significant premium," the Auckland-based company said before trading began today.

SkyCity Entertainment Group has decided not to sell its Christchurch Casino stake, and has slashed its dividend. However, the listed Auckland firm said yesterday that it was proceeding with plans to sell the Adelaide Casino and SkyCity Cinemas in deals that could reap it about USD 400 million. SkyCity executive director Elmar Toime yesterday also revealed an 18 per cent fall in group net profit to USD 98m, in line with the casino firm's previous guidance.

The acting head of casino operator Sky City Entertainment Group said growth next year would be tempered by a smoking ban in Adelaide and the completion of its Auckland refurbishments. The company has predicted a 10 to 12 per cent increase in net profit for 2008. Executive director Elmar Toime said the Auckland and Adelaide factors would temper growth in market share but he was unconvinced that forecasts of a tightening economy would have a major effect.

Skycity Entertainment chief Evan Davies has become the second casino chief executive this year to pay the price for underperformance, after the board announced his immediate departure yesterday. It comes two months after the company revealed a 23 per cent fall in interim profit and as the trans-Tasman operator steers through a major restructure - which is likely to lead to the sale of some of its assets - potentially leaving it a prey for James Packer's Crown Gaming and private equity.

Auckland's SkyCity casino has caught two loan sharks and barred them from the gaming floor. SkyCity yesterday admitted the presence of the loan sharks after allegations from gamblers and a former staff member that money-lenders had roamed freely at the casino for at least five years. The casino has taken trespass orders against the two loan sharks and told the Department of Internal Affairs.