Nov. 11 (Bloomberg) -- Las Vegas Sands Corp. will get a $525 million investment from the family of Chief Executive Officer Sheldon Adelson and plans to sell $1.62 billion more in shares to raise cash and avoid bankruptcy.

Las Vegas Sands, which yesterday reported a third-quarter loss, dropped 33 percent in New York trading after it offered about 181.8 million shares of common stock for sale at $5.50 each.

Adelson, who owns about two-thirds of the company, was ranked the third-richest man in the U.S. by Forbes magazine before the shares tumbled 95 percent this year. The casino owner needs the cash to avoid violating the terms of some U.S. loans and triggering defaults that may force it into bankruptcy. Las Vegas Sands said yesterday it will halt construction in Macau, where it earns two-thirds of revenue, to focus on a $4 billion Singapore project.

``Between the $2.14 billion in capital Las Vegas Sands intends to raise and the $1.8 billion in development spending it will now forego, it looks as if LVS will live to fight another day,'' Robert A. LaFleur, an analyst with Susquehanna Financial Group LLLP, wrote in a research note today.

Las Vegas Sands fell $2.66 to $5.34 at 4:15 p.m. in New York Stock Exchange composite trading.

The casino owner said yesterday that demand for the common stock, preferred shares and warrants it's offering exceeded the supply.

It's the second investment in two months from Adelson. He injected $475 million of cash into the company Sept. 30.

`Loss of Confidence'

While Adelson, 75, adds funds to the company, executives may be showing dissatisfaction with the way he's running it. In a regulatory filing yesterday, Las Vegas Sands said it set up a board committee to address ``outstanding differences between our chief executive officer and other senior management members.''

The company also said the board was addressing a ``loss of confidence by certain senior management members in the management of the company.''

Ron Reese, a Las Vegas Sands spokesman, didn't immediately return a call seeking comment.

Las Vegas Sands shares have plunged this year because investors are concerned dwindling casino revenue and the global financial meltdown will sap the cash it needs to pay for expansion projects and loans. The company, which is valued at $1.8 billion on the stock market, was worth $51 billion in October 2007.

Adelson met with Singapore government officials last week and pledged to complete the project. Hong Kong and Macau bankers are also discussing financing for the company's Macau developments, said two people involved in the transaction.

Chinese Loans

In Macau, Las Vegas Sands will stop work on the remaining five phases planned on the Cotai Strip until it finds financing. The Macau government is ``encouraging'' Chinese banks to lend Las Vegas Sands money to continue work on phases 5 and 6, Adelson said on a conference call with analysts and investors yesterday.

The casino owner plans to secure financing in three to six months to finish the work in Macau.

Besides the common stock offering, investors may buy a share of preferred stock plus a warrant to buy 16.67 shares of common stock for $100. The Adelsons bought at the same terms, Las Vegas Sands said.

The Adelsons agreed to buy 5.25 million shares of preferred stock and warrants to purchase about 87.5 million shares of common stock at an exercise price of $6 each, the Las Vegas- based company said today in a statement.

To contact the reporter on this story: Mark Clothier in Atlanta at mclothier@bloomberg.net

Last Updated: November 11, 2008 16:23 EST