Aztar to be purchased by Pinnacle for $1.45 bln

As it was reported on Monday Pinnacle Entertainment Inc. would buy Tropicana-owner Aztar Corp. for about $1.45 billion, all the outstanding shares of Aztar for $38 (by the way Aztar shares were up $7.10, or 23 percent, at $37.77 in morning trading on the New York Stock Exchange. Pinnacle was up $2.19, or 7.8 percent, at $30.20). The company is ready to pay in cash. The purchase will make it possible for Pinnacle Entertainment Inc. having properties in Indiana, Nevada, Louisiana and Argentina but possessing no casinos in Las Vegas to extend the power into the markets of Las Vegas and Atlantic City.

As the company claims the deal will cover about $723 million in Aztar debt and will surely give 24% over Aztar’s closing price, defined on March 10.

According to William Schmitt’s words – an analyst at CIBC World Markets – the company is going to pay up, what is explained by the fact that the lands owned by Aztar in Las Vegas are rather costly.

The analysts say that the takeover deal is the largest one in the gambling business since the previous year Pinnacle’s positions that were not welcomed and obviously dwarfed by Harrah’s Entertainment Inc. and MGM Mirage Inc. that couldn’t let the third but a smaller chain enter the two largest casino markets in the USA.
That deal made Pinnacle the world’s largest casino operator after Caesars Entertainment Inc.(the possession of Harrah’s Entertainment Inc. ) was closed and MGM Mirage bought out Mandalay Resort Group.

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About Mark Newman

Mark Newman - was born in 1971 in Pictou, a town located on the beautiful Northumberland Shore of Nova Scotia, Canada. In 1998 he graduated from Acadia University (Nova Scotia, Wolfville) with the Master’s degree in social studies. Mark simply adores his wife and sons. Considers poker to be one of the most exquisite kinds of art and rarely misses his chance of practicing.