SAN DIEGO, Dec. 18, 2017 /PRNewswire/ -- Shareholder rights law firm Johnson Fistel, LLP has launched an investigation into whether the board members of Pinnacle Entertainment, Inc. ("Pinnacle ") (NASDAQ: PNK) breached their fiduciary duties in connection with the proposed sale of the Company to Penn National Gaming, Inc. ("Penn National") (NASDAQ: PENN). Pinnacle engages in ownership, operation, and development of casinos and related hospitality and entertainment businesses.
On December 18, 2017, Pinnacle announced that it had signed a definitive merger agreement with Penn National. Under the terms of the agreement, Pinnacle shareholders will receive $20.00 in cash and 0.42 shares of Penn National common stock for each Pinnacle share, which implies a total purchase price of $32.47 per Pinnacle share based on Penn National's closing price on December 15, 2017. However, shareholders will be subject to the future price fluctuation of Penn National's stock price.
The investigation concerns whether the Pinnacle board failed to satisfy its duties to the Company shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for Pinnacle shares of common stock. Nationally recognized Johnson Fistel is investigating whether the proposed deal represents adequate consideration, especially given the Company's outlook for future earnings growth, and one Wall Street analyst has a $36.00 price target on the stock.
If you are a shareholder of Pinnacle and believe the proposed buyout price is too low or you're interested in learning more about the investigation or your legal rights and remedies, please contact lead analyst Jim Baker (email@example.com) at 619-814-4471. If emailing, please include a phone number.
About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.
SOURCE Johnson Fistel, LLP