hi mariyatrader, these messages boards have gotten quiet.
Yup I guess 6 months a bit of and stretch, I guess i was just surprised that the spread was so tight even before a deal had been worked out. You think an agreement to divest will suffice, not an actual sale. only have small position at this point, mostly been watching. gl
I don't think it will be six months. Recent news suggests PNK wants to settle. You don't actually have to sell the casinos before closing, just come up with an agreement of which ones to sell (and a time frame to do so) that makes everyone happy. The fact that there are only 2 properties in question in Lake Charles, and 3 of 4 in St. Louis, means one divestiture in each market should do it (back to the status quo before the deal), as contemplated in the MA. The selloff the other day appeared to be free money, but of course anything can happen when bureaucrats get involved.
I'm now up 36% since taking position in LIWA. What do you think of it now. It's going to $20+ this year because of some big events that is going to happen this year with the PCAOB agreement with China.
Sentiment: Strong Buy
Class Challenges Acquisition of Ameristar
By STEVE TWEEDY
(CN) - Ameristar Casinos shareholders are challenging a takeover by Pinnacle in a shareholder class action lawsuit.
According to shareholder Chen Yang, who owns over 10,000 shares, the deal undercuts the company's true value. "Each of the individual defendants breached their fiduciary duties owed to Ameristar and its stockholders in furtherance of their plan to protect and advance their own interests, at the expense of and to the detriment of Ameristar and its public stockholders," the complaint states. "Among other things, the individual defendants have agreed to sell the company at an unfairly low price."
Yang said Ameristar directors and executive "have clear and material conflicts of interest and are acting to better their own interests and the interests of Ameristar's other senior managers and directors at the expense of the company and its public shareholders."
"Defendants have initiated a process to sell Ameristarthat undervalues the company and vests them with benefits that are not shared equally by 'Ameristars public shareholders - a clear effort to take advantage of the temporary depression in 'Ameristars stock price," the complaint states. "In addition, by agreeing to the proposed transaction. Defendants have capped the price of Ameristarat a price that does not adequately reflect the company's true value."
The prominant law firm Tripp Levy PLLC represents the class. Tripp Levy PLLC 877-772-3975
Forgot about Lake Charles. PNK had already dropped out of there with Sugarcane Bay. now they'll inherit Ameristar's project. Do they want that? This doesn't seem very good for either side to me. ASCA shareholders don't get enough money. PNK gets trouble in their two best markets.
Guess this is why ASCA dropped out of Massachusetts bidding.
Won't the new company have to sell one of the St Louis area casino? They'll have three of the four in the area. There's one in East Stl as well but Missouri regulators won't care about that. That's the only visible overlap.
ASCA continues to move right a long. I'm going to keep going with ASCA until the potential dwindles. I also subscribe to the Prophet Alerts website for great alerts like ASCA. It is def worth your time as I was at first unsure of what to expect but my portfolio thanks me :)
December 21, 2012
New York, New York -- Tripp Levy PLLC, a leading national securities law firm, announces that it is investigating the acquisition of Ameristar Casinos on behalf of shareholders. Pinnacle Entertainment, Inc. (PNK) and Ameristar Casinos, Inc. (ASCA) announced today that the companies have entered into a definitive agreement under which Pinnacle will acquire all of the outstanding common shares of Ameristar for $26.50 per share.
The investigation concerns whether the board of directors of Ameristar breached their fiduciary duties by not engaging in a full and fair auction and sale process for the company while obtaining personal benefits for themselves to sell at this price. Indeed, analysts estimate that the true buyout value of the company is worth at least $33 per share.
If you are a shareholder and would like additional information concerning this matter, please contact us toll free at 877-772-3975