Key Takeaways
- Bally’s Corp. shares took off Monday, soaring almost 30%, after hedge fund Standard General made a new bid to take over the casino operator.
- Standard General offered $15 per share for Bally’s, a 41% premium from Friday’s closing price and above Monday’s $13.64 close.
- The hedge fund had made a $38-a-share bid for the company in January 2022, which was rejected.
Bally’s Corp. (BALY) shares skyrocketed almost 30% after hedge fund Standard General offered to buy the rest of the shares of the casino operator it doesn’t own for $15 a share. That would be a 41% premium to Bally’s closing price Friday.
Standard General said in a regulatory filing Monday that it had sent the proposal to Bally’s board of directors, and in it noted that it expects members to appoint a special committee of independent directors to consider the offer and make recommendations.
Standard General said that if the committee doesn’t recommend the deal, it won’t pursue a hostile takeover, and it added “we would not expect our relationship with the Company to be adversely affected and would be committed to remaining as a long-term stockholder of the Company.”
The proposal is well below the $38-per-share bid Standard General made in January 2022. The special committee set up then to evaluate it rejected that offer in May. Chief Executive Officer Lee Fenton said at the time that that company “has very substantial opportunities in front of it.”
Bally’s shares gained 28.4% to close Monday at $13.64. Despite the gain, shares of Bally’s have lost more than a quarter of their value over the past year.