Patriot American to Buy California Jockey

Patriot American Hospitality Inc. said it finalized its agreement to acquire California Jockey Club and Bay Meadows Operating Co. for about $195 million in cash or stock. The $33-a-share transaction would give Dallas-based Patriot American control of the Bay Meadows Racecourse in San Mateo as well as an unusual corporate structure that would allow it to shelter earnings from corporate income taxes while operating the racetrack and its own hotel properties. The company also said it will issue a 2-for-1 stock split in the form of a stock dividend on March 7. Patriot American shareholders will vote on the acquisition at the annual meeting in May. Patriot American is the second-largest hotel real estate investment trust in the U.S. California Jockey Club, a REIT based in San Mateo, leases a racetrack to Bay Meadows Operating Co. Patriot American shares rose 87.5 cents to close at $45 on the New York Stock Exchange; Bay Meadows shares rose 37.5 cents to close at $42.375 on the American Stock Exchange.