Pinnacle Announces Ameristar Aquisition

Property, especially property owned by gambling concerns, seems to change hands quite frequently. today, Pinnacle announced that it was buying Ameristar for the healthy price tag of $869 million.

that will, no doubt, add many jobs to the area both during construction and when the facility is operating.

Pinnacle Entertainment is buying Ameristar Casinos for about $869 million, plus taking on its $1.9 billion in debt.

Pinnacle's Director of Media Relations and Public Affairs, Kerry Andersen, confirmed the Ameristar Casino project currently underway in Lake Charles will move forward.

"The acquisition allows us to leverage ownership of the two properties to create a terrific, integrated full-service casino resort complex to further promote Lake Charles as a gaming destination," Andersen said.

The Ameristar project is being located adjacent to the L'Auberge Casino Resort, owned by Pinnacle.

"L'Auberge has been a driving force in establishing Lake Charles as a gaming destination and the addition of another property will serve to strengthen and expand the market," said Andersen.

If approved by shareholders and regulators, the deal would more than double Pinnacle's casino and resort holdings to 17 in the United States.

Pinnacle will pay $26.50 for each share of Ameristar Casinos Inc. That's a 20 percent premium over the company's Thursday closing stock price of $22.07. The deal also includes $116 million in cash on hand as of Sept. 30.

The deal has been approved by the boards of both Las Vegas operators.

Pinnacle Entertainment Inc. says it expects the acquisition to result in cost savings of at least $40 million a year and boost the company's earnings after closing.