From the Wires
Acquisition of Ameristar Casinos, Inc. by Pinnacle Entertainment, Inc. May Not Be in Ameristar Casinos Shareholders' Best Interests
By: PR Newswire
Dec. 21, 2012 09:23 PM
SAN DIEGO and LAS VEGAS, Dec. 21, 2012 /PRNewswire/ -- Shareholder rights attorneys at Robbins Umeda LLP are investigating possible breaches of fiduciary duty and other violations of the law by members of the board of directors of Ameristar Casinos, Inc. (NASDAQ: ASCA) in connection with their efforts to sell the company to Pinnacle Entertainment, Inc. (NYSE: PNK).
On December 21, 2012, Ameristar Casinos and Pinnacle Entertainment announced they had entered into a definitive merger agreement under which Pinnacle Entertainment will acquire Ameristar Casinos through an all cash offer. Ameristar Casinos shareholders will receive $26.50 per share. The transaction is expected to close in the third quarter of 2013.
The Board of Directors' Actions May Prevent Ameristar Casinos Shareholders from Receiving the Maximum Value for Their Stock
Robbins Umeda LLP's investigation focuses on whether the board of directors at Ameristar Casinos is undertaking a fair process to obtain maximum value and adequately compensate its shareholders. The $26.50 per share offer price is substantially below the $31 target price maintained by an analyst at Knight Equity Research, and the $29 price set by an analyst at Imperial Capital. Further, on October 31, 2012, Ameristar Casinos announced that the company's third quarter of 2012 "was one of Ameristar's most profitable ever." Given, these facts, the firm is examining whether the board of directors' decision to sell Ameristar Casinos for $26.50 per share is fair to shareholders and maximizes the value for their shares.
Ameristar Casinos shareholders have the option to file a class action lawsuit against the company to secure the best possible price for shareholders and the disclosure of material information so shareholders can vote on the transaction in an informed manner. If you own Ameristar Casinos stock and are interested in information about your rights and potential remedies, contact Darnell R. Donahue at (800) 350-6003, firstname.lastname@example.org, or via the shareholder information form on the firm's website.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to http://www.robbinsumeda.com.
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SOURCE Robbins Umeda LLP
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