Decisions, Decisions…
What’s a casino to do when you get not one, but two offers to buy?
In addition to a pending offer by Pinnacle Entertainment made in early March, the Tropicana Casino owners now have another option on the table to examine.
The LA-based real estate investment firm, Colony Capital Acquisitions, has offered $1.4 billion in cash for the Aztar Corporation. Aztar owns the Tropicana Casinos in LV and Atlantic City. If the deal would go through, Colony Capital would become the country’s third largest casino company. The combination of Colony and Aztar’s properties would give the new company a stock market value of approx. $5 billion.
Aztar has three days to respond to Colony’s offer and has not commented. However, its reported that if Aztar nixes the earlier merger agreement with Pinnacle, Colony would have to pay Pinnacle a break-up fee of more than $40 million.