Source: The New York Times | DealBook
Penn National Gaming said Thursday that it has terminated its $6.1 billion sale to two private equity firms, after agreeing that completing the deal would not be possible without a lengthy litigation process reports The New York Times. Under the terms of the now-terminated deal, the casino operator would have received $67 a share in cash from Fortress Investment Group and Centerbridge Partners. Instead, Penn National will receive $1.475 billion, including both a $225 million break-up fee and a $1.25 billion equity investment by the two firms, due in 2015 or repayable by an equivalent amount of stock.
Unlike other buyouts like that of Clear Channel Communications, Penn National said that a renegotiated, lower deal price was “not a viable option.”
Tell us what you think