Vince Martin
Long/short equity, value, gambling

Don't Expect A Bidding War For Ameristar

Probably the biggest story on a quiet pre-Christmas Friday on Wall Street was the $2.8 billion acquisition of Ameristar Casinos (NASDAQ:ASCA) by Pinnacle Entertainment (NYSE:PNK). The market was clearly impressed by the tie-up between two of the US's largest regional operators, as Pinnacle's stock rose 21.3% and Ameristar jumped 20 percent.

What is noteworthy about Ameristar's move, however, is its closing price: $26.50 per share, exactly the cash amount offered per share by Pinnacle. Given the fact that the merger will not close until the third quarter of 2013, it would appear that some investors are perhaps hopeful that a second bidder will emerge for Ameristar. After all, there's little point to buying a stock in...

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