In all financial dealings, it is common fare to offer far less than one is actually willing to spend.  It is a way of taking what one can get, if you will.  If the selling party does not flinch, then the offer is to be raised - which is precisely what may be happening with the selling of Riviera Holdings, who owns both The Riviera in Las Vegas and the Black Hawk Casino and Resort in Colorado.

Unnamed investors apparently made an offer of $17 per share for Riviera Holdings, which would have worked out to be $425 million after all was said and done.  This amount would barely cover the value of the land alone that Riviera Casino sits on in Las Vegas, let alone the casino itself and its other property in Colorado.  In what could be an offer worthy of being laughed at, DE Shaw investment bank of New York (who currently owns 10% of Riviera Holdings), immediately responded to the purchase offer by giving a better one of their own.

DE Shaw's move is seen as a way to get the interested investors to raise their initial bid to something that is more realistic - something that the company is actually worth.  And although Shaw could be interested in owning the company all by themselves, the way in which investors responded indicates they are looking to get a higher offer. 

Now the waiting game begins, which may be spiced up a bit considering the battle that is taking place over Tropicana Casino.  Some are predicting that whoever does not get the buyout of Tropicana will likely turn their attention to Riviera, which would really get the offering prices more to the liking of Riviera investors.