PENN Entertainment rises as activist Donerail targets co

PENN Entertainment

31/05/2024 14:55

** Shares of casino gaming company PENN Entertainment
 PENN.O  rise 8% to $15.81
    ** Activist investor Donerail Group, shareholder of PENN,
sends open letter to co's board
    ** Says PENN's casino assets alone could be worth more than
double its current market capitalization
    ** Donerail believes in event of sale, PENN could generate
"meaningful and certain" value creation for equity investors,
given industry's appetite to grow inorganically
    ** "Misguided interactive strategy and poor capital
allocation have destroyed shareholder value, resulting in PENN
trading at a steep discount to its intrinsic value," says
Donerail
    ** Notes management's spending of "billions of dollars" in
gaming deals; questions PENN CEO's compensation amid financial
underperformance and stock decline
    ** PENN stock has fallen ~44% YTD

 (Reporting by Aatreyee Dasgupta)
 ((Aatreyee.Dasgupta@thomsonreuters.com))