Pinnacle To Buy Ameristar Casinos Inc.
Las Vegas, Nevada (KMVT-TV/Associated Press) Pinnacle Entertainment is buying Cactus Pete's owner for approximately $869 million and take on $1.9 billion of its debt.
If the deal is approved by shareholders and regulators, Pinnacle will pay $26.50 for each share of Ameristar Casinos Inc.
That's a 20% premium over the company's Thursday closing stock price of $22.07. It's also gaining $116 million of the company's cash.
The deal is expected to close by the end of the third quarter and has been approved by the boards of both Las Vegas operators.
Ameristar has eight casinos in the United States including Cactus Petes Resort Casino and the Horseshu Casino Hotel in Jackpot, Nevada.
Pinnacle, as a result would more than double in size.