MTR Gaming Group, Inc. (NASDAQ:MNTG) today got an updated proposal from Jeffrey P. Jacobs, Chairman and CEO of Jacobs Investments, in which the latter urges the Board of MTR to accept his proposal of merger, a filing with the SEC stated. Public shareholders of MTR Gaming would get $30 million which is higher than $24.6 million that they will receive if the company accepts the proposal to merge Eldorado Resorts.
Jacobs said the following in his letter: “Obviously my proposal to merge at an implied value of $5.69 per share represents significantly more value to shareholders than the $5.15 value per share in the existing Eldorado merger agreement. When the Board meets, it should also keep in mind the following additional aspects in which my proposal is clearly and obviously superior to the existing Eldorado merger agreement:” (download the letter below)
Jeffrey Jacobs holds a significant position in MTR Gaming, his stake comprising 5.1 million shares of the company, which represents 18.14% of the company. He first offered to sell Jacobs Entertainment to MTR at the beginning of October, issuing a slideshow that supports his case. MTR Gaming entered into a merger agreement with Eldorado Resorts.