Penn National causes others to bid higher for racetrack

Nov 3, 2009 3:38 AM
Industry Insider by Ray Poirier |

The words "Penn National" are probably banned from being spoken on the reservation of the Chickasaw Nation of Oklahoma. Especially, after the racino giant caused the Indians to pay an additional $20 million to acquire Lone Star Park in Texas.

It all began when The Chickasaw Nation told Magna Entertainment Corp. (MECA) that it was willing to buy the Texas horse track for $27 million. Penn National Gaming Inc. (PENN) then bid $28 million for the track.

After the PENN bid was rejected, the company told Magna International it was willing to pay $40 for the struggling pari-mutuel facility. Magna reported that to the bankruptcy judge who then ordered a second round of bidding, starting at $40 million.

The Chickasaws upped their bid to $47.8 million which the company and the court accepted.

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