Las Vegas-based gaming company Pinnacle Entertainment Inc. (NYSE: PNK) will more than double in size now that it agreed to acquire Ameristar Casinos Inc. (Nasdaq: ASCA) for roughly $2.8 billion.

As part of the agreement, Pinnacle will acquire all of the outstanding common shares of Ameristar for $26.50 per share in cash, including debt of $1.9 billion, as of Sept. 30. The offer represents a premium of 45 percent over the average closing price of Ameristar common stock over a period of 90 days, ending Dec. 20.

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