A majority holder in Ameristar Casinos Inc. (NDAQ:ASCA) announced yesterday that they would undertake and continue to evaluate strategic alternatives that may become available with respect to their holding in the company, according to a Schedule 13D/A filing with the SEC. Shareholders are hoping that these alternatives will unlock value in the company and jump the somewhat stagnant stock price.

The Estate of Craig H. Neilsen, which now ows a 55.2 percent stake in the company, said that since the passing of Craig Neilson they have begun evaluating strategic alternatives for their holdings. These could including a merger or business combination, a transfer or disposition of a material amount of assets, or an open market transaction in the company's common stock.

Currently, nothing is set in stone as the group continues to evaluate its strategic alternatives. According to the filing, "There is no assurance whether or when any transaction may result from the Co-Representatives' ongoing review and evaluation." Fortunately, however, it sounds like the shareholder will not be simply selling its shares en masse on the open market.

In the end, there are a lot of possibilities here with the shareholder that now holds a majority stake in the company. Selling all of its shares on the open market would not be a prudent move, so it is likely that the group will attempt a private placement or a strategic transaction that would unlock value in the company's shares (like a merger). Regardless, this is definitely a stock worth watching while this situation unfolds!

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