Boyd Gaming Rolls the Dice on Casino Deal

NEW YORK (TheStreet) -- In rolling the dice on a $1.45 billion acquisition of Peninsula Gaming, heavily indebted Boyd Gaming is taking one of the more notable recent gambles in the risk-fueled casino industry. The move may prove to be a well-timed push into southern and Midwestern economies after Boyd was unsuccessful in a larger play for Station Casino's -- as well as a diversification away from the hyper-competitive Las Vegas and Atlantic City gambling markets -- but the acquisition will add roughly $1 billion to already high debt levels and the prospect of shareholder dilution. If it's to be the "transformative" deal for which Boyd has been searching, though, it's a gamble that hinges on the U.S. economy avoiding a slowdown. Initial analyst and shareholder reaction was mixed, and suggest the deal won't propel shares from the single digits and anywhere near pre-recession highs. ... Click to view a price quote on BYD. Click to research the Leisure industry.

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