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$4.7 billion offer tabled for Station Casinos

The latest in a series of buyout bids for casino operators has seen Station Casinos announce that it has received a bid of $4.7 billion from a Colony Capital affiliate and senior Station officials.

Private equity deals have already been tabled for operators including Harrah's Entertainment in recent weeks, and analysts expect the trend to continue over the coming months.

Colony Capital already has holdings in a variety of casinos including Kerzner, and the Atlantic City and Las Vegas Hiltons.

Meanwhile, Station's chief executive Frank J Fertitta III and president Lorenzo Fertitta have joined forces to collaborate in the deal, which would see the brothers roll over some of their 27 per cent stake into the multi-billion dollar deal.

Despite the magnitude of the bid, industry insiders have advised that a higher bid may be needed to secure the deal.

"The company has discussed the stock being worth $90 to $100, and investors may have a similar expectation. It would be difficult to match a bid including management," said UBS analyst Robin Farley, speaking to the Associated Press.

Station announced that it had received the bid at the end of last week, but added that no decision was yet forthcoming.


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