Penn Entertainment gains amid Boyd gaming speculation after board addition

Penn Entertainment (NASDAQ:PENN) rose 1.2% at least partly after Boyd Gaming (BYD) gaming added a director with investment banking experience to its board.

Boyd Gaming (BYD), which is speculated to potentially interested in buying all or parts of Penn Entertainment (PENN), announced on Monday that it added Michael A. Hartmeier to its board. Hartmeier is the former group head of lodging, gaming and leisure investment banking for Barclays, and previously served as group head for hospitality and gaming for both Lehman Brothers and Credit Suisse First Boston.

The Boyd (BYD) appoint comes after activist investor Donerail Group late last month said Penn Entertainment (PENN) could attract double its current trading price in a sale and urged the company to put itself on the market. The news pushed PENN shares up 20% on May 31.

It's possible that Boyd (BYD) could be looking at all or parts of Penn (PENN), Gordon Haskett's Don Bilson wrote in a note on Tuesday.

CNBC's David Faber earlier this month said Penn may see some takeover interest after the activist news was released.

"I'm definitely hearing that there is some stuff around," CNBC's David Faber said on the business network. "Will see if anyone actually comes to the fore with a bid. Could there be interest from a Boyd (BYD)? Could there be interest from some other names that are out there?"