Gaylord Entertainment: Takeover Target?
May 17, 2012 at 3:50 AM (PT)
GAYLORD ENTERTAINMENT CO. may now be a takeover target after shareholders last week allowed a "poison pill" provision to expire, reports BLOOMBERG NEWS.
The company, which owns Country WSM-A/NASHVILLE, the GRAND OLE OPRY, OPRYLAND USA, and four convention hotels, is valued at $1.69 billion; investor MARIO GABELLI's GAMCO INVESTORS INC. led the move to allow the protection against hostile takeovers expire.
Analyst SAM YAKE of BGB SECURITIES said that the company could get at least $45 per share, which is 37% more than its average price over the last 20 days. "Shareholders think that the stock’s worth a heck of a lot more than it’s currently trading at and I think that’s what they want to get at," YAKE told BLOOMBERG. "Management knows that they need to do something."
Speculation regarding a buyer centers on several hotel investors and real estate investment trusts.