Penn Entertainment's stock rises as hedge fund HG Vora reportedly seeks board seats

Penn Entertainment Inc.'s stock (PENN) was up by 1.9% in premarket trading on Thursday after The Wall Street Journal reported that its 18.5% shareholder, hedge fund HG Vora Capital Management, is seeking seats on the casino operator's board of directors. Citing people familiar with the matter, the WSJ report said HG Vora is in negotiations about placing directors on the company's board, but the sources did not say how many seats are being requested. If the talks fail to bear fruit, HG Vora could instead launch a proxy fight, the WSJ reported. Penn's current timetable for nominating people to its board starts on Jan. 8 and ends on Feb. 7, according to filings. HG Vora sees Penn Entertainment's stock as undervalued, with failed bets on acquisitions and an ailing capital allocation record, the report said. Prior to Thursday's trades, Penn Entertainment's stock was down by 15.8% in 2023, compared to a 24.5% gain by the S&P 500 .

-Steve Gelsi

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12-28-23 0747ET

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