The sale of American gaming firm Penn National Gaming for $6.1 billion has been terminated due to the credit crunch and tumbling stock prices.
The takeover by PNG Acquisition Company Inc., an entity indirectly owned by certain funds managed by affiliates of Fortress Investment Group and Centerbridge Partners, was agreed to 13 months ago at price of $67 per share.
At the beginning of 2008 Penn's shares stood at $60. Today they linger around $27.75.
"Based on discussions between Penn National Gaming and PNG Acquisition Company, it became apparent to Penn National Gaming and its Board of Directors that the proposed merger transaction would not be completed without significant and lengthy litigation which is inherently unpredictable," Penn National Gaming said in a prepared statement. "Further, it also became apparent to the Company and its Board that a re-negotiated, reduced purchase price was not a viable option."