Oct 5 (Reuters) – U.S. casino operator Penn National Gaming Inc has been in merger discussions with rival Pinnacle Entertainment Inc, the Wall Street Journal reported, citing people familiar with the matter.
The companies have engaged in on and off discussions about a deal, but have been unable to agree on terms, the Journal said. However, Wyomissing, Pennsylvania-based Penn National is still interested in buying Las Vegas-based Pinnacle, according to the report. (on.wsj.com/2y3kGQp)
Penn National and Pinnacle’s shares touched record highs on Thursday, with Penn National rising as much as 8 percent to $24.74 and Pinnacle surging 14.1 percent to $24.94 in late-afternoon trading.
Penn National had a market capitalization of about $2.09 billion as of Wednesday’s close, while Pinnacle was valued at $1.26 billion. The combined companies have an enterprise value of about $10.69 billion, according to Thomson Reuters data.
Penn National operates 27 facilities in the United States and Canada, including the Tropicana Las Vegas and the Hollywood Casino at Charles Town Races.
Pinnacle owns and operates 16 gaming properties, including the Meadows Casino in Washington, Pennsylvania, and Boomtown Casino Hotel in New Orleans.
Penn National and Pinnacle were not immediately available for comment. (Reporting by Ankit Ajmera in Bengaluru; Editing by Martina D‘Couto)