Since consideration of the agreement remains pending before a number of state regulatory authorities, "the company has concluded that it is unlikely that all of the requisite regulatory approvals will be obtained on or prior to June 15, 2008," according to the release.

Under terms of the agreement, the cash payment to shareholders of $67 per share of common stock is to be increased by $0.0149 per day if the merger does not close by June 15. However, the agreement also allows for the expiration date to be extended by 120 days to Oct. 13, with shareholders receiving written notice. Through its spokesman, Penn National declines to comment on whether this option will be exercised if regulatory approvals are not obtained by June 15.

As previously reported on GlobeSt.com, Penn National shareholders approved the sale last December. Prior to the shareholder vote, the company made several moves to expand its holdings. Among the expansion moves was the $310-million integration of Hollywood Casino at Penn National Race Course. In its first three months of operation following a February opening, the casino produced approximately $41 million in gross terminal revenues on wagers of $475 million, according to figures from the PGCB. Penn National generated a gross profit of $1.03 billion in the 12-month period ending Dec. 31, 2007, according to a company financial statement, and now owns and operates 19 facilities with a total of more than 900,000 sf of gaming floor space and 1,730 hotel rooms.