Following an initially rejected bid made by Fertitta Colony Partners to buy Station Casinos and take the gaming operator private, Station Casinos has announced they have accepted a second bid made by the private equity group. Starting off at $82 per share, Fertitta Colony upped their offer to $90 per share, which values the entire company at almost $5.4 billion. And with an assumption to repay $3.4 billion in debt, which Station Casinos currently owes, the overall buyout is valued at $8.8 billion.

Casino gaming analysts do not expect the Fertitta's to raise their offer, although there is still a possibility that another private group could give a higher bid. Considering the fact that the Las Vegas casino gaming industry has been getting loads of attention from private buyer's recently, the possibility of getting another bid is certainly not unrealistic. Station Casinos currently has thirty days to solicit more offers, although some gaming analysts are predicting that Station Casinos will not actively pursue more bidders.

The fact remains that the Fertitta family and Colony Capital (Fertittal Colony Partners) have extensive assets, not to mention valuable experience in the casino gambling and hospitality sector. Colony Capital owns the Las Vegas Hilton (among other gaming properties), while the Fertitta's have enormous stake in Station Casinos already and Green Valley Ranch resort. With such a degree of first-hand experience, it is unlikely that any other private group could operate the company as efficiently as Fertitta Colony Partners could.

Yet, despite the common synergies, if a higher bid does come, Station Casinos will certainly have to give it serious consideration. CtW, which is a consultant for a large group of pension funds holding over 2.6 million shares in Station Casinos, thinks the offer is still too low. CtW immediately spoke out against the initial offer, writing a letter to non-management board members expressing their opinion that the offer did not take into consideration the tremendous value in Station Casinos real estate holdings.

CtW still thinks an offer of $97 per share more accurately reflects the true value of the gaming company. Whether stock holders take these recommendations to heart will play out over the next thirty days as the gaming industry keeps a close tab on the prospects of attracting more bidders.