Colony Capital, a US real estate investor, is backing a $4.7bn (€3.5bn) buyout offer for US-based Station Casinos, in the latest example of private investment groups targeting a casino operator.

Colony is backing a $82-per-share bid by Frank Fertitta, the company's chairman and chief executive and his brother Lorenzo Fertitta, Station's president. The offer represents a 19% premium on the closing price of Station shares last Friday, and an 11.8 times multiple of the company's projected 2007 earnings.