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Anchor, IGT Merger Set to Close

LAS VEGAS -- International Game Technology and Anchor Gaming announced Wednesday that IGT's $1.2 billion purchase of Las Vegas-based Anchor is expected to take place Sunday.

Anchor will become a wholly-owned subsidiary of IGT in a stock-for-stock deal, with each Anchor shareholder slated to receive one share of IGT stock for each surrendered share of Anchor.

"I'm pleased that this important transaction will be completed in a timely manner," said IGT President and Chief Executive Officer Tom Baker in a Wednesday statement.

Anchor Gaming stock will cease to trade on the Nasdaq at Friday's market close.

As a precursor to the merger, Las Vegas-based Anchor announced Wednesday it reached a deal to sell its San Diego-area tribal casino management contract for $77 million.

Under terms of the planned sale, the Pala Band of Mission Indians will pay Anchor $14 million when the deal closes, and will sign a $63 million promissory note to complete the purchase.

Both Anchor and IGT shares hit 52-week highs Wednesday.

IGT shares were up $1.97 Wednesday, closing at $69.26 on the New York Stock Exchange.

Anchor shares were up $2.02 on Wednesday, closing at $69.33 on the Nasdaq.

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