Posts with tag gambling
Posted Sep 25th 2007 2:46PM by Paul Foster
Filed under: Options, Deals, Management, Top deals, Rumors, Engagements, Private equity industry, Public or private?
MGM Mirage(NYSE:MGM) is recently up $1.78 to $87.38. Dubai World, a holding company for the Persian Gulf state, announced on 8/22/07 it will pay $2.7 billion to acquire a stake in MGM City Center, a 76-acre Las Vegas development. Dubai World will also buy 14 million shares from MGM for $84 a share and 14 million from investors. Unconfirmed chatter is circulating Dubai World will raise its tender bid.
Penn National Gaming(NYSEPENN), a diversified, multi-jurisdictional owner and operator of gaming properties, agreed to be acquired on 6/15/07 by certain funds managed by affiliates of Fortress Investment(NYSE:FIG) and Centerbridge Partners for $67 dollars a share. The deal is expected to close in mid-2008. PENN is recently trading at $58.26.
Daily M&A Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Posted Aug 7th 2007 3:09PM by Paul Foster
Filed under: Deals, Management, Financials and analyticals
MGM Mirage(NYSE:MGM) volatility Elevated on unconfirmed chatter of Kerkorian's interest in all of MGM. MGM is recently up $3.43 to $77.92 on unconfirmed chatter controlling Kirk Kerkorian will make a bid for the entire company. MGM has a market cap of $21.6 billion. Kerkorian's Tracinda announced its intention on 5/22/07 to enter negotiations with MGM to acquire Bellagio and City Center from MGM. MGM call option volume of 5,913 contracts compares to put volume of 785 contracts. MGM August & September option implied volatility of 45 is above its 26-week average of 35 according to Track Data, suggesting larger risk. Wynn Resorts (NASDAQ:WYNN) is recently up $11.46 to $118.85 after reporting better than expected EPS of .92 cents. Las Vegas Sands (NYSE:LVS) is $20 over the last week after reporting strong EPS on 8/1/07.
Archstone-Smith Trust(NYSE:ASN) volatility up into ASN pushing deal out to 10/5. ASN announced Tishman Speyer and Lehman (NYSE:LEH) $60.75 cash purchase of ASN will close on October 5th, versus previously in early September. ASN is recently at $56.66. ASN owned or had an ownership position in 344 communities, representing 86,014 units as of 3/31/07. SBSH say's "ASN announcement that it granted Tishman & LEH more time to close the transaction is a slippery slope which we believe may lead to the deal being re-priced or the $1.5 billion break up fee being paid." ASN over option implied volatility of 16 is above its 10-week average of 13 according to Track Data, suggesting larger risk.
Daily M&A Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
Posted Jun 15th 2007 4:25PM by Tom Taulli
Filed under: Public or private?
Late last year,
Penn National Gaming (NASDAQ:
PENN) tried to buy
Harrah's (NYSE:
HET). But, in the end, private equity firms
TPG and
Apollo won the deal.
Ironically enough, now Penn has decided to
go private. The deal is valued at about $5.73 billion and the buyers include
Fortress Investment Group LLC (NYSE:
FIG) and Centerbridge Partners LP. There will also be a repayment of $2.8 billion in existing debt.
While casinos generate lots of cash flows, it's still not easy to pull off a buyout deal. A big problem is dealing with the mind-numbingly complex gambling laws. In other words, it should take at least a year to close the Penn transaction.
Although, at 10 times EBITDA, the deal has a reasonable valuation.
On the news of the transaction, Penn's stock climbed 21.92% to $62.35. The buyout offer is $67.
Tom Taulli is the author of various books, including the Complete M&A Handbook
and the EDGAR-Online Guide to Decoding Financial Statements
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