On 13 March Pinnacle Entertainment and Aztar Corporation announced a definitive merger agreement under which Pinnacle will acquire all of the outstanding shares of Aztar for US$38.00 per share in cash. Colony Capital last week offered US$41.00 and today Ameristar Casinos has published its US$42.00 all-cash proposal in a deal that would make the combined company the fifth largest publicly traded owner and operator of gaming properties in the US. It would also give Ameristar access to the Las Vegas and Atlantic City gaming markets and a development opportunity on the Las Vegas Strip.

That Aztar, a Pheonix-based company, is such an attractive proposition has much to do with its Tropicana operation in Atlantic City. Craig H. Neilsen, Ameristar's Chairman of the Board, President and Chief Executive Officer said, "This strategic combination would also create substantial value for Ameristar and its shareholders, both in the near term by establishing Ameristar as a leading national competitor in the gaming industry with a broader and more balanced geographic portfolio, and in the long term by expanding the Company's growth platform. We are particularly excited about the opportunity to apply our proven track record of success to developing a truly world-class gaming and entertainment property at one of the most attractive development sites on the Strip."

Financially this latest offer for Aztar has superior value for shareholders. As the two companies have no overlap in the market, Ameristar expects to be able to realize immediately substantial growth potential following completion of the transaction and over the long term. The company would look to redevelop the Las Vegas Tropicana property and implement further enhancements at the Tropicana Atlantic City. The proposed acquisition is subject to approval by Aztar’s Board and shareholders, as well as gaming regulatory authorities’ approval and antitrust clearance. (E-04.03.06)

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