Gambling Firm Agrees to Buyout

Penn National Gaming changes hands for $8.9B
By Marie Morris,  Newser Staff
Posted Jun 15, 2007 4:08 PM CDT
Gambling Firm Agrees to Buyout
Julia Simonic, left, Gloria Samuel, middle, and Bernie Takach, right, all from Pittsburgh, play slot machines at the Meadows Casino in Meadow Lands, Pa., on Monday, June 11, 2007. The temporary facility has 1,738 slot machines and will eventually be replaced by a permanent parlor near the harness track....   (Associated Press)

(Newser) – The casino-operator buyout spree continued today as Penn National Gaming agreed to be acquired by two private-equity firms for $8.9 billion. The deal, which allows the company to solicit bids for 45 days, includes $2.8 billion in debt. News of the $67-a-share offer, a 31% premium over yesterday's closing price, drove the stock up to $62.12 at close.

Fortress Investment Group and Centerbridge Partners teamed to make Penn National the fourth casino operator to go private in the past year. The company, which failed in its attempt to take over Harrah's last year, also runs racetracks. Its widespread operations make a drawn-out regulatory approval process likely; the deal is expected to take 12 to 16 months to close. (Read more private equity stories.)

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