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Experts: Aristocrat May Swipe WMS From Viacom18 February 2002NEW YORK – As reported by Business Week: "If Viacom CEO Sumner Redstone doesn't buy WMS Industries (WMS ) soon, a leading Australian gambling outfit, Aristocrat Leisure, may just beat him to it. So argue several industry pros, who say the steep drop in WMS shares makes the producer of coin-operated video and gaming machines an attractive takeover target. "Redstone, whose holding company National Amusements already owns 30% of WMS, continues to buy stock in the open market, now trading at 16.80 a share--down from its 52-week high of 32 in mid-June. "…The stock dropped after WMS was hit by a software problem in January, 2001, resulting in delayed state regulatory approvals of several of its new machines, lower house takes on its games, and order cancellations. "With WMS trying to resolve its problems, the company could become buyout bait, given the `strong balance sheet [no debt and $93 million in cash as of Dec. 31, 2001] and its powerful licenses and brands,' says Jason Ader of Bear Stearns. "…David Bain of Roth Capital Partners says Aristocrat wants to buy WMS: Aristocrat is seeking to `make a splash in the U.S. market and take on industry biggie International Game Technology,' which has 70% of the gaming-machine market…" |