PNG Stocks Surge On Split News

Published: November 16, 2012 01:44 pm EST

Stocks of casino and racetrack operator Penn National Gaming surged on Friday, November 16 after it announced that it will be splitting into two public companies.

Citing a Penn National release, a brief report by Bloomberg News states that investors will receive a dividend of roughly $5.35 a share and that Penn National will continue to run most of raceways and casinos.

Penn National Spokesman Joe Jaffoni stated that the move should not have an effect on day-to-day operations in regard to the company's customers and employees. “It’s business as usual,” Jaffoni was quoted as saying.

FOX News is reporting that Penn National shares soared to $50.50 early Friday morning, and that Penn National will spin off its real estate assets into a game-focused real estate investment trust that includes over 17 casinos, 3,200 acres of land, 6.9-million square feet of building space and 20,000 structured parking spaces.

(With files from Bloomberg News, Columbus Business First and FOX News)

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