REUTERS UPDATE 1-Casino firm Pinnacle to buy Aztar for $1.45 bln [FWYJRCM]
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NEW YORK, March 13 (Reuters) - Casino operator Pinnacle
Entertainment Inc. <PNK.N> on Monday said it would buy Aztar
Corp. <AZR.N> for about $1.45 billion in cash, extending its
reach into U.S. gambling markets such as Las Vegas and Atlantic
City.
Pinnacle said it would buy all of the outstanding shares of
Aztar for $38 each in cash.
The company said the deal, which also involves the
assumption of about $723 million in Aztar debt, represents a
premium of about 24 percent over Aztar's closing price on March
10.
Aztar shares were up $7.30, or 24 percent, at $38.00 in
morning trading on the New York Stock Exchange. Pinnacle was up
33 cents, or 1.2 percent, at $28.29.
The combined company will have 12 gaming properties in the
United States, including Nevada, New Jersey, Louisiana,
Missouri and Indiana, and more than 8,800 hotel rooms.
Phoenix-based Aztar owns the Tropicana casino resorts in
Las Vegas and Atlantic city, among others, while Las
Vegas-based Pinnacle owns such properties as the L'Auberge du
Lac Hotel and Casino in Lake Charles, Louisiana.
The deal gives Pinnacle cross-marketing opportunities,
which could help it attract more customers to its casinos.
"We intend to create a nationwide casino network, not unlike
that of some of our larger competitors," Pinnacle Chief
Executive Daniel Lee said in a statement. "We believe that we
will be able to leverage the combined company's extensive
network to increase customer loyalty across the system."
The boards of directors of both companies have approved the
deal, which will be fully financed and is expected to close by
the end of the year, Pinnacle said.
Pinnacle said it had received a financing commitment from
Bear, Stearns & Co. Inc. and Lehman Brothers Inc. to complete
the transaction.
( Symbols:
de;ZTG de;ZTGF de;ZTGX us;AZR us;PNK
Source RTRS Reuters News
