Report: Magna Considering Purchase of Lone Star Park

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An offer by Magna Entertainment to buy Lone Star Park in North Texas could be made within two weeks, according to a Feb. 9 report by the Fort Worth Star-Telegram.

The newspaper said several people close to the negotiations indicated some sticking points exist, but still expected a deal soon. Magna has reportedly been interested in the Grand Prairie racetrack since Frank Stronach, Magna's founder and chairman, visited the track during Easter weekend last year.

Magna executives have made it clear in the past few months that more acquisitions are part of the company's long-term strategy. The Toronto-based racing conglomerate intends to issue an additional 20 million shares of stock later this year to fund future purchases and capital improvements for its existing properties. Magna already owns eight racetracks including Santa Anita Park and Gulfstream Park.

Lone Star Park's property is owned by the city of Grand Prairie and leased to the racetrack's management company, which is headed by Bob Kaminski and the family of Dallas real estate developer Trammel Crow. Kaminski is chairman of Lone Star.

Any significant transfer of ownership in the racetrack or the managment company would require approval from the Texas Racing Commission, accorindg to the Star-Telegram. Paula Flowerday, executive secretary of the racing commission, reportedly said she has not been advised of a pending sale.

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