Page 8 - Stakis C Case Study
P. 8
Future
"More hotels (not overseas) and casinos. Overseas scares
the hell out of me. We need to consolidate. Businesses
get fat, we are not at that stage yet".
"I'm more democratic now than when I first came! I can
afford to be".
The group was left with Hotels, Casinos and Healthcare.
However, it was concluded that it did not have the financial
resources to develop all of these businesses satisfactorily,
particularly in the light of the complex financial
arrangements with its 21 banks.
It had not been possible in the market conditions prevailing
to dispose of the Casino business and they were taken off
the market in January 1992. At the same time Healthcare,
which was a relatively immature business, would require
considerable expenditure to maintain progress and to
achieve market leadership. There was the continuing
burden of presently undeveloped sites. While there was a
clear long term future for this business the strain on
finances were considered to be such as to inhibit the
necessary development of the core business of hotels.
Michels view was:
