Pinnacle to buy Ameristar

Investor's Business Daily

The operator of 7 casinos in Louisiana, Missouri and Indiana said it will pay $869 mil for Ameristar Casinos (ASCA), a merger that will give the combined company annual revenue of $2.4 bil. Pinnacle Entertainment (PNK) will acquire all Ameristar shares for $26.50 per share in cash and take on Ameristar's $1.9 bil debt, valuing the deal at about $2.8 bil. After the acquisition, Pinnacle will have 17 properties in 13 different areas of the U.S. Pinnacle is also helping develop Vietnam's first large casino resort. Pinnacle shares jumped 21.4% to 16.20.

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