LAS VEGAS — Private equity bidders extended their shopping spree for casino companies Monday as Station Casinos Inc. said it received a $4.7-billion buyout offer from its founding family and an affiliate of Colony Capital.
The $82-a-share offer for the Las Vegas-based neighborhood casino operator, backed by Chief Executive Frank J. Fertitta III and President Lorenzo Fertitta, represented an 18.7% premium to Friday's closing price. Station shares shot above the mark Monday, rising $15.80, or 22.9%, to $84.90.
Analysts predicted that the offer might go higher and that interest by private equity groups in the gambling sector, rich in cash flows and real estate, would continue.
"All casino operators remain in play," CIBC World Markets Corp. analyst David Katz said in a research note. "With shares continuing to trade on private market speculation, we recommend to investors [to] continue to own the group."