Colony Capital Affiliates Drop Pinnacle Plan

Two affiliates of buyout firm Colony Capital of Los Angeles have terminated their previously announced plan to buy casino operator Pinnacle Entertainment Inc. in a deal valued at about $1.3 billion. Glendale-based Pinnacle said the parties involved, which had previously agreed on a Jan. 31 extension of their deadline to close the deal, “mutually agreed that the merger agreement and all related transaction documents have been terminated.” Pinnacle declined to elaborate on why the deal was terminated, but earlier reports indicated Colony could not finance the deal at a favorable rate due to tightening credit for casino purchases. Pinnacle shares fell 6 cents to close at $12.75 on the New York Stock Exchange.