Boyd Takeover by Sands Unlikely
(Boyd takeover article updated with additional analyst commentary.)
NEW YORK (
) --
Boyd Gaming
(BYD) - Get Report
is the center of takeover chatter Wednesday, sending shares in Boyd higher in morning trading.
The market is speculating that one possible buyer of Boyd Gaming could be
Las Vegas Sands
(LVS) - Get Report
, according to theflyonthewall.
|
Still, it is highly unlikely this rumor will bear fruit, KeyBanc analyst Dennis Forst says. "Las Vegas Sands has made it clear they are an Asian company and don't want domestic assets."
Sterne Agee analyst David Bain also call this "unfounded speculation. Las Vegas Sands' profile of focusing on high-end destination locations, the convention business and Asia gaming growth does not match Boyd's asset profile, in our view," he says.
Instead, Bain sees Boyd as a potential acquirer of bankrupt
Station Casinos
, for which it has made a $2.45 billion bid.
This is not the first time Boyd Gaming has been the focus of takeover rumors, and Forst also does not see much possibility of another company picking Boyd up unless it's an international operator.
Regardless, shares of Boyd are gaining 2.2% to $9.64 on heavy volume.
-- Reported by Jeanine Poggi in New York.
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