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Levi & Korsinsky, LLP has commenced an investigation into the fairness of the sale of Pinnacle Entertainment, Inc. (NASDAQ: PNK) to Penn National Gaming, Inc. (NASDAQ: PENN). Under the terms of the transaction, Pinnacle Entertainment shareholders will receive $20.00 in cash and 0.42 shares of Penn National stock for each share of Pinnacle Entertainment stock they own. Based on Penn National’s closing price on December 15, 2017, this represents a value of approximately $32.47 per share.
The investigation concerns whether the Board of Pinnacle Entertainment breached their fiduciary duties to stockholders by failing to adequately shop the Company before agreeing to enter into this transaction, and whether Penn National is underpaying for Pinnacle Entertainment shares, thus unlawfully harming Pinnacle Entertainment shareholders.
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