Ameristar Casinos, Inc. (NASDAQ:ASCA) Investor Files Lawsuit Against Takeover Attempt By Pinnacle Entertainment, Inc

If you purchased shares of Ameristar Casinos, Inc. (NASDAQ:ASCA) prior to December 21, 2012, and currently hold any of those NASDAQ:ASCA shares, you have certain options and you should contact the Shareholders Foundation, Inc.

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Company Name(s): 
Ameristar Casinos
Case Name: 
Ameristar Casinos Deal Case 01/04/2013
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: ASCA
Lawsuit Overview
Type of Lawsuit: 
Mergers and Acquisition
Date Filed: 
01/04/2013
Summary: 

Jan. 07, 2013 (Shareholders Foundation) -- An investor in shares of Ameristar Casinos, Inc. (NASDAQ:ASCA) filed a lawsuit against directors of Ameristar Casinos in effort to halt the takeover of Ameristar Casinos, Inc.by Pinnacle Entertainment, Inc Incorporated at $26.50 per NASDAQ:ASCA share

According to the complaint the plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:ASCA stockholders by agreeing to sell the company too cheaply via an unfair process.

On December 21, 2012, Pinnacle Entertainment, Inc. (NYSE: PNK) and Ameristar Casinos, Inc. (Nasdaq GS: ASCA) announced that the companies have entered into an agreement under which Pinnacle Entertainment will acquire all of the outstanding common shares of Ameristar Casinos for $26.50 per share in cash, for a total enterprise value of $2.8 billion, including debt of $1.9 billion and cash on hand of $116 million as of September 30, 2012.

However, the plaintiff alleges that the $26.50-offer is too low and unfair to NASDAQ:ASCA stockholders. Indeed, at least one analyst has set the high target price for shares of Ameristar Casinos, Inc. (NASDAQ:ASCA) at $33.00 per share.