Hobbs racino owner wins Gaming Board OK for merger

Penn National Gaming Inc. said it has received approval from the New Mexico Gaming Control Board for the pending merger of the company and certain funds managed by investment groups.

Penn (NASDAQ: PENN) owns and operates 19 gaming and racing facilities, including the Black Gold Casino at Zia Park in Hobbs, N.M. Penn has a merger pending with certain funds managed by Fortress Investment Group LLC (NYSE: FIG) and Centerbridge Partners LP. The transaction remains under review by the New Mexico Racing Commission. Black Gold is a race track and offers slot machine games.

Penn is seeking to complete the merger by the second quarter of 2008. The Ohio Racing Commission approved the merger, subject to the delivery of several documents. The New Jersey Racing Commission approved the merger, subject to several customary conditions, and the West Virginia Lottery Commission has also approved it. The West Virginia Racing Commission is still reviewing the transaction.

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Penn shareholders have approved the merger. Under the terms of the agreement, if the transaction is completed by June 15, 2008, shareholders will be entitled to receive $67 in cash, without interest, for each share of company common stock they own. If it is not completed by June 15, the $67 per share merger consideration will be increased by $0.0149 per day.