JACKSON, MS Harveys Casino Resorts pending acquisition of Pinnacle Entertainment, parent company of Casino Magic Biloxi, will enable the combined company to engineer a multi-million dollar expansion of the Biloxi resort.
Harveys will pay a total of $1.28 billion in cash and assumed debt for the acquisition of Pinnacle Entertainment, taking over the Boomtown and Casino Magic chains. The price comes out to approximately $24/share, plus the assumption of about $650 million in Pinnacle debt.
Once market conditions improve, the company hopes to complete a major expansion of the Biloxi resort, including a new hotel tower, an entertainment facility and the remodeling of the existing casino. Cost estimates of the project total $100 million. The company also hopes to change the theme of the Biloxi hotel-casino and has discussed a joint venture with Jimmy Buffet s Margaritaville. (11/17/00)
SOURCE: The Sun Herald