Regional gaming operator Pinnacle Entertainment on Wednesday dismissed an investor proposal to spin-off the company’s 14 casinos into a real estate investment trust. During a conference call to discuss the Las Vegas-based company’s first quarter earnings, Pinnacle officials said they are focused on consolidating the casinos the company acquired last year in its $2.8 billion buyout of rival Ameristar Casinos. Pinnacle CEO Anthony Sanfilippo said the company wants to reduce its $4.35 billion in debt, much of which was taken on because of the Ameristar transaction. However, Sanfilippo said the company might consider the idea in the future. Earlier this month, Orange Capital, a New York-based investment fund, suggested the REIT split, which is similar the split performed last year by Penn National Gaming, as a way to increase shareholder value. Source: reviewjournal.com
Spin-Off
