Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Pinnacle Rises as Orange Capital Buys Stake, Urges REIT Spinoff

April 21 (Bloomberg) -- Pinnacle Entertainment Inc. rose the most in five months after activist investor Orange Capital LLC disclosed a 4.5 percent stake and urged the casino owner to spin off its properties into a real estate investment trust.

The shares rose 7.9 percent to $23.83 at 12:20 p.m. in New York after climbing as much as 8.8 percent, the most intraday since Nov. 6.

Orange Capital, the hedge fund co-founded by Daniel Lewis, is in talks with Las Vegas-based Pinnacle’s board and management and is pushing for a transaction that would distribute the proposed REIT to the company’s shareholders in a tax-free transaction, according to a regulatory filing today.

Pinnacle owns and operates 14 casinos in Colorado, Indiana, Iowa, Louisiana, Mississippi, Missouri and Nevada, as well as racetracks. New York-based Orange Capital, which said it holds 2.64 million shares of Pinnacle, also has targeted companies such as Strategic Hotels & Resorts Inc., a hotel REIT, and PHH Corp., a mortgage and fleet manager.

Penn National Gaming Inc., a Pinnacle competitor, last year spun off most of its real estate into a REIT similar to what was proposed by Orange Capital, creating Gaming & Leisure Properties Inc., the first casino real estate investment trust.

To contact the reporter on this story: Beth Jinks in New York at bjinks1@bloomberg.net

To contact the editors responsible for this story: Mohammed Hadi at mhadi1@bloomberg.net; Anthony Palazzo at apalazzo@bloomberg.net John Lear, Ben Livesey

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.