Station Casinos to go private in $5.4 bln deal

Lorenzo Fertitta (L) ,Vice Chairman and President of Station Casinos and his brother Frank Fertitta (R), chairman and CEO of the company speak to Reuters reporters during the Reuters 2006 Hotel and Casino Summit in Los Angeles February 13, 2006. Station Casinos Inc. said it agreed to be acquired by privately held Fertitta Colony Partners LLC for $90 per share, or $5.4 billion in cash. REUTERS/Sam Mircovich

NEW YORK (Reuters) - Station Casinos Inc. STN.N said on Monday it agreed to a $5.4 billion management-led buyout, after the investor group buying the company raised its offer by about 10 percent.

The Las Vegas-based company, which operates off-strip casinos used mostly by locals, is being taken over by a group called Fertitta Colony Partners, formed by Station Chief Executive Frank Fertitta, his brother and company vice chairman Lorenzo Fertitta, and a unit of private equity firm Colony Capital.

The group said on Monday it would take over Station for $90 per share, or $5.4 billion in cash. It will also assume debt of about $3.4 billion.

The price is an 8 percent premium to Station’s closing price of $83.30 on the New York Stock Exchange on Friday.

Fertitta Colony Partners made its original offer to buy Station on December 4, for a price of $82 per share.

The deal is expected to close in about six to nine months, Station said.

Reporting by Anup Roy in Bangalore, Bill Rigby in New York