UPDATE 2-Judge approves $772 mln bid for Station Casinos
* Fertitta brothers will be largest shareholder
* Confirmation hearing scheduled for Aug. 27-28 (Adds company comment, details of bid)
LOS ANGELES Aug 6 (Reuters) - A Nevada judge approved on Friday a $772 million bid led by current owners Frank and Lorenzo Fertitta as the "highest and best" offer for most assets of bankrupt Station Casinos Inc [STN.UL].
The move retains the Fertitta brothers as the largest shareholder of the Las Vegas-based company, which was founded in 1976 by their father.
The bid from the Fertittas, Colony Capital and several banks covers Station's wholly-owned properties, tribal gaming partnerships and land held for future development, Scott Nielson, the company's executive vice president said in a statement.
Station Casinos filed for bankruptcy last year after being unable to pay interest on the debt it took on in 2007 when the Fertittas and Colony Capital took it private in a $54 billion leveraged buyout.
Potential rival bidder Boyd Gaming Corp (BYD.N) dropped out of the auction last week, citing bidding procedures that favored insiders.
Station, which specializes in operating Las Vegas casinos that cater to local residents rather than tourists, said final approval of the reorganization could come at a court hearing scheduled for Aug. 27 and 28.
The company's remaining assets, including joint venture interests, are undergoing a separate restructuring. (Reporting by Deena Beasley; editing by Andre Grenon, Bernard Orr)