Activist hedge fund Orange Capital disclosed a 4.5% stake in casino operator Pinnacle Entertainment, Inc (NYSE:PNK) and is now pushing for the company to put its real estate holdings into an REIT (real estate investment trust) which would be distributed to shareholders in a tax-free transaction, reports Beth Jinks for Bloomberg Businessweek.
Pinnacle Entertainment, Inc (NYSE:PNK), which owns 14 casinos across the US in addition to its racetracks and other holdings, saw its stock price jumped almost 9% on the news, though it has since settled into a roughly 5.6% increase. If Pinnacle were to follow Orange Capital’s suggestions, it would follow competitor Penn National Gaming Inc. (NASDAQ:PENN) which put its...
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