Station Casinos to be acquired for $5.4B

NEW YORK (CNNMoney.com) -- Station Casinos announced Monday it has agreed to be acquired by Fertitta Colony Partners LLC (FPC) for about $5.4 billion.

The total transaction is valued at approximately $8.8 billion, including a $3.4 million debt.

Station (up $3.45 to $86.75, Charts) shares soared 4.2 percent in morning trading on the New York Stock Exchange.

FCP has agreed to pay $90 per share in cash for the gaming and entertainment company's outstanding common stock, which marks a 30 percent premium over Station's closing stock price on Dec. 1.

Under the terms of the agreement, Station may solicit acquisition proposals from third parties for 30 business days following the signing of the merger agreement.

The transaction is subject to shareholder approval, regulatory approvals and customary closing conditions and could be completed within the next six to nine months.

FCP is a new company formed by Chairman and CEO of Station, Frank J. Fertitta, Vice Chairman and President of Station, Lorenzo J. Fertitta, and Colony Capital Acquisitions, LLC.

Station competitors include MGM Mirage (down $0.36 to $72.23, Charts) and Las Vegas Sands Corp (up $0.11 to $91.94, Charts).

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