Pinnacle Entertainment, Penn National stocks soar after WSJ report of merger talks
Shares of Pinnacle Entertainment Inc. (PNK) shot up 7.9% in afternoon trade Thursday, and of fellow casino operator Penn National Gaming Inc. (PENN) climbed 4.0%, after The Wall Street Journal reported the companies have held merger talks. Citing people familiar with the matter, the WSJ report said that the companies have engaged in "on-again, off-again" discussions about a deal but have been unable to agree on terms, although Penn National was still interested in buying Pinnacle. At current share prices, Pinnacle has a market capitalization of $1.36 billion and Penn National's market cap is $2.18 billion. Taking into account the companies' significant debt burdens, the WSJ report said the companies have a combined enterprise value of about $12 billion. Pinnacle's stock has now soared 20% over the past three months, while Penn National shares have jumped 14% and the S&P 500 has gained 4.9%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
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