Gaming & Leisure makes hostile offer for Pinnacle's real estate assets

Gaming and Leisure Properties Inc. (GLPI) has gone hostile with its offer to buy Pinnacle Entertainment Inc.’s real estate assets.

In an effort to remove risks from Pinnacle’s plan to split its real estate and operating assets into two companies by 2016, GLPI has put in an offer of $4.1bn, including debt.

GLPI, which buys real estate leased to casino operators, proposes that each existing Pinnacle share would be traded for one share of the company housing Pinnacle's operating assets and 0.5517 shares of the combined GLPI-Pinnacle real estate company.

Pinnacle shareholders would receive an aggregate value of about $36 per share, according to GLPI. Pinnacle's market value was $1.65bn based on Friday's close of $27.42.