Filed under: Deals, Management, KKR, Rumors, Raising money, Bain Capital, Engagements, Shareholders, Value and lack thereof
Station Casinos (NYSE: STN) volatility Elevated as Arbitrage spread widens. STN, a gaming and entertainment company owns and operates eight major hotel/casino properties & six smaller properties in Las Vegas. STN is recently down $1.61 to $81.30. STN Chairman & Chief Executive Frank J. Fertitta & Colony Capital anticipate to close on their $90 purchase of STN before year’s end. STN October option implied volatility of 29 is above its 32-week average 17 of according to Track Data, suggesting bigger price risks.
First Data (NYSE: FDC) volatility Elevated as Arbitrage spread widens. FDC, the world’s largest processor of credit-card payments, announced on April 2 it would be bought by Kohlberg Kravis Roberts & Co. (KKR) for $29 billion. FDC shareholders will receive $34 in cash for each share. FDC is recently trading down 81 cents to $30.20. The deal is expected to close in the third quarter. FDC September option implied volatility of 33 is above 16-week average of 17 according to Track Data, suggesting larger risk.
Guitar Center (NYSE: GTRC) volatility Elevated as Arbitrage spread widens. GTRC is recently down $1.46 to $55.47. GTRC announced on June 27 it would be acquired by Bain Capital for $63; the total transaction value is $2.1 billion. GTRC September option implied volatility of 26 is above its 7-week average of 15 according to Track Data, suggesting more massive risk.
Daily M&A Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
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