Penn National buyout halted
From Times Wire Services
Two investment firms pulled the plug on their $5.82- billion acquisition of Penn National Gaming Inc. after the racetrack and casino operator’s stock price tumbled.
Fortress Investment Group and Centerbridge Partners will pay Penn National $225 million in cash as a termination fee, plus $1.25 billion in what amounts to no-cost capital until 2015.
Penn National said that its board was unwilling to negotiate a reduced buyout price and that the settlement was preferable to suing the buyers to force the acquisition.