News - Latest - Entertainment
   Web        OGpaper portal          


Penn National Gaming deal called off

Penn National Gaming deal called off The Penn National Gaming buyout by Fortress Investment Group was going to be the largest leveraged buyout in history, but it was called off on Thursday. Fortress Investment Group (NYSE:FIG) stuck a deal in March of 2008 to take over Penn National Gaming Inc. (NASDAQ:PENN), a deal worth $6.1 billion, or $67.00 per share. But Penn National Gaming announced on Thursday that the deal has been called off. Thursday's announcement comes a week after the Illinois Gaming Board had approved the acquisition, leading it one step closer to getting all the needed approvals for the deal. Shares of Penn National have already been under pressure for several months amid investors' concerns that the terms of the deal might be revised or that the buyout firms would fail to get funding for the deal at affordable rates, considering the current financial crisis. Under the termination agreement, Penn National Gaming will receive $1.475 billion, consisting of a break-up fee of $225 million and what effectively would be a seven-year, interest-free $1.25 billion loan, which helped the shares of the gambling company, which at press time traded at 29.49 or +3.15%, following a dip to 27.06 earlier today.

 Penn National Gaming Inc. (Penn National) is a diversified, multi-jurisdictional owner and operator of gaming properties, as well as horse racetracks and associated off-track wagering facilities (OTWs). It owns or operates 19 gaming properties located in Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, West Virginia, and Ontario that are focused primarily on serving customers within driving distance of the properties. The Company has its owned gaming properties, which includes Charles Town Entertainment Complex, Argosy Casino Lawrenceburg, Hollywood Casino Aurora, Empress Casino Hotel, Argosy Casino Riverside, Hollywood Casino Baton Rouge, Argosy Casino Alton, Hollywood Casino Tunica, Hollywood Casino Bay St. Louis, Argosy Casino Sioux City, Boomtown Biloxi, Hollywood Slots at Bangor, Bullwhackers and Black Gold Casino at Zia Park. Operating gaming property includes Casino Rama, which is the only property.

 Published on 07/03/2008

Related News:

 Foxwoods Casino resorts to layoffs to battle economy
 Kansas Supreme Court gives green light to casinos




Copyright 2005 © . All rights reserved.