Horse racing: Seder and Magna reach agreement on “stalking horse” bid

January 08, 2010 | Drew Forrester

Jeffrey Seder, owner of Blow Horn Equity LLC, checked in with WNST.net early this afternoon to provide more complete details on his upcoming bid to win the January 21st auction for Laurel and Pimlio race tracks.

As reported earlier this week at WNST.net, Seder’s group is, in fact, attempting to become the auction’s “stalking horse” and Seder confirmed this afternoon that the deal between Blow Horn Equity and Magna Entertainment has been signed.  The stalking horse tag simply means Seder’s group has made an offer to Magna that is acceptable to them for the purchase of the two tracks should no other party make a bid above Seder’s offer on January 21.

“The paperwork has been signed for the stalking horse agreement with Magna,” Seder says.  ”We have some money to wire them on Monday or Tuesday to make the entire deal complete, and once that’s taken care of, we have a deal.”

A source recently told WNST.net that Seder’s group, based out of West Grove, PA, now includes Baltimore Orioles owner Peter Angelos, but Seder today said that Angelos is not involved from a monetary standpoint as part of Seder’s attempt to buy the two tracks.

“We have the hedge fund from Texas to help with the money,” Seder says.  ”Peter’s involved with us, yes, but he’s not involved in our Maryland effort. We are working on some other projects together.”

WNST.net also disclosed earlier this week that sources indicate Seder’s group would be willing to submit the application and the $28 million fee for the Baltimore City slots license.  ”Our goal is to improve horse racing in Maryland and it’s not necessarily tied into slots, but yes, if it came down to it and we need to purchase the Baltimore City license, we’d certainly consider doing that,” Seder told WNST.net today.

Seder denied a WNST.net report earlier this week that his company has an order on hold to purchase slot machines from a company in Australia.

“We’re not looking to fight with anybody in Maryland,” Seder concludes.  ”We want to own the tracks and we want to get Maryland racing back on track and we think we have the knowledge and the experience to do that.  We came in to the process late, but that was our intention all along. We’ve been putting our game-plan together for a while now and it’s all just starting to become public, which is fine, but I want to be clear that our main intention, first, is to buy the tracks and improve the horse racing industry in Maryland.  If slots eventually get factored in as part of our ownership, we’ll deal with that as it comes along.”

Sounding like the owner of a 3:5 favorite, Seder said:  ”We’re not going to lose (this auction).”

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