Takeover rumors fuel Boyd stock run-up
An Internet rumor fueled a run-up on shares of Boyd Gaming Corp. Wednesday, sending the casino operator’s stock price well over the $10 mark on New York Stock Exchange.
Shares of Boyd Gaming closed at $9.58, up 14 cents or 1.48 percent.
Boyd became the center of takeover chatter and the market speculated that one possible buyer was Las Vegas Sands, according to one Internet source.
Spokesmen in both companies said they had no idea where the rumor began.
One gaming analyst said the rumor was highly untrue.
“Las Vegas Sands has made it clear they are an Asian company and don’t want domestic assets,” said KeyBanc analyst Dennis Forst.
Sterne Agee analyst David Bain called the rumors, “unfounded speculation.”
“Las Vegas Sands’ profile of focusing on high-end destination locations, the convention business and Asia gaming growth does not match Boyd’s asset profile, in our view,” Bain said.
This is not the first time Boyd Gaming has been the focus of takeover rumors, and Forst also does not see much possibility of another company picking Boyd up unless it’s an international operator.