Ameristar is Possible Take-Over Target Owner Left Shares to Foundation

Ameristar is Possible Take-Over Target Owner Left Shares to Foundation

Las Vegas-based Ameristar is a prime candidate to be purchased by another casino company, primarily because of the foundation that owns more than half of the company's shares is likely to sell. The stock is also near record lows for the last five years. The foundation acquired the shares when Craig Nielson, the company's founder and CEO passed away in June 2006. Nielson had been confined to a wheel-chair when he was alive. He was paralyzed from the neck down in a car accident while working. His 31.5 million shares which represented more than 50% of the company were left to a foundation that focuses on spinal cord research.

A number of analysts thought that the company was going to be sold in June 2008 when Ameristar's CEO John Boushy's resigned. The most likely purchaser would be Penn National which is slated to receive $1.45 billion in compensation for a scuttled merger. Another possible buyer is MGM Mirage. Also, the Australian gaming group Crown Ltd which is owned by billionaire James Packer and is buying the Cannery Hotels might also consider buying Ameristar.

The stock closed at $14 on August 8, 2008, near the bottom of its 52 week low.

John Laub is the Chairman of the CEO-CFO Group.

1. "Ameristar Takeover a Likely Bet in Near Future." Jui Chakravorty. Reuters. July 31, 2008.