Pinnacle Entertainment Inc.’s $1.3 billion takeout by Colony Capital’s Harveys Casino Resorts is on track to hit the jackpot, although the Street appears to doubt this. Indeed, the $25-per-share cash buyout has continued to trade more than $3 below the offer-at press time, Glendale, Calif.-based Pinnacle closed at $21.75. The deal offers $24 for each Pinnacle share, plus another $1 a share once the company completes the sale of a parcel of land in Inglewood, Calif. Announced on April 17, the transaction includes the assumption of $650 million in debt. Pinnacle shareholders are scheduled to vote on the deal on Oct. 10, and the company has stated it anticipates a fourth-quarter close.
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