Penn National Gaming gets another merger approval

LOS ANGELES (Reuters) - Penn National Gaming Inc (PENN.O: Quote, Profile, Research) said on Thursday it had received approval by the West Virginia Lottery Commission over its pending sale to a consortium led by Fortress Investment Group LLC (FIG.N: Quote, Profile, Research).

Shares of the company, which operates gaming and racing facilities in 15 different jurisdictions, rose nearly 5 percent after hours.

Penn said it was seeking to complete the merger, which it announced last June, in the second quarter of 2008.

Regulatory approval is needed in every jurisdiction in which the company operates, a spokesman said.

Thus far, Penn has received approvals from racing commissions in Ohio and New Jersey, as well as the approval secured by the lottery commission in West Virginia. That state's racing commission has yet to approve the deal.

The merger has also been approved by shareholders of Penn.

Under terms of the agreement, Penn shareholders will receive $67 in cash for each share of company's common stock they own if the merger is completed by June 15. That amount will be increased $.0149 per day if the merger is not completed by that date, the company said in a statement.

Shares of Penn rose $1.94 to $43.50 in extended trading after closing at $41.56 on Nasdaq.

(Reporting by Alexandria Sage, editing by Richard Chang)