UPDATE 3-Penn National Q3 net jumps on deal breakup fee

* EPS $1.69 vs 52 cents year earlier

* Helped by merger termination fees

* Ex-items EPS 50 cents vs 54 cents year earlier

* Shares rise about 16 percent (Adds share price, full-year revenue outlook)

NEW YORK, Oct 27 (Reuters) - Penn National Gaming Inc (PENN.O), the racetrack and casino operator, posted sharply higher quarterly profit on Monday, helped by payments related to an aborted takeover of the company.

Shares of Penn National, which hit a high of $62.25 last November, rose 13 percent on Monday to $14.38 on Nasdaq.

Third-quarter net income jumped to $147.5 million, or $1.69 a share, from $46.6 million, or 52 cents a share, in the same period a year ago.

Excluding merger termination fees and other one-time items, profit was 50 cents a share, down from 54 cents a year ago.

Net revenue fell to $617.9 million from $629.5 million.

Analysts, on average, expected revenue of $617.19 million and earnings of 34 cents per share, according to Reuters Estimates.

On July 3, Penn National said a $67-a-share buyout by Fortress Investment Group and Centerbridge Partners had been terminated.

Under the termination agreement, Penn National said it would receive $1.475 billion, consisting of a $225 million cash termination fee and a $1.25 billion preferred equity investment.

Based on a number of assumptions, Penn National said it expects fourth-quarter earnings of 28 cents per share. The company earned 36 cents a share in the same quarter a year ago.

For full-year 2008, it anticipates earnings of $2.75 per share versus full-year 2007 profit of $1.81 per share.

The company cut its full-year 2008 revenue target to $2.42 billion from a previous estimate of $2.54 billion. (Reporting by Mark McSherry, editing by Dave Zimmerman/Jeffrey Benkoe)