Shares of Boyd Gaming Corp. (BYD) jumped up by some 20 percent last week when it was announced activist investor Elliott Associates LP had taken a 5 percent stake in the company.
Traders immediately began speculating the Elliott firm would attempt to nudge the company into a real estate investment trust (REIT) split. Such a spinoff last year was made by Penn National Gaming Inc. (PENN) when it placed some 19 casino properties into a REIT to improve return on investment for shareholders.
The New York investment firm has a track record of investing in distressed companies and pressuring them into making changes to boost shareholders’ value.
Ray Poirier is the longtime executive editor at GamingToday.
Contact Ray at [email protected].