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Shareholders Approve IGT-Anchor Deal

LAS VEGAS -- Shareholders of International Gaming Technology and Anchor Gaming voted Tuesday to approve IGT's $1.2 billion purchase of Las Vegas-based Anchor, paving the way for the deal's completion by the end of the week.

It was approved by 98 percent of the companies' shareholders.

"We are pleased that IGT and Anchor Gaming stockholders overwhelmingly approved the proposed transaction," said Tom Baker, IGT's President and Chief Executive Officer.

The combined companies would have a total stock market value of $5.9 billion, creating the largest publicly traded company in Nevada, according to Tuesday's closing stock prices for the companies. The next largest is MGM Mirage with a Tuesday stock market value of $4.4 billion.

The slot makers generated revenues of $1.84 billion during the 2001 budget year.

Nevada gaming regulators are set to consider the deal at a Thursday meeting in Carson City.

IGT is the world's largest manufacturer of slot machines and has a market capitalization of $4.9 billion. The company has 4,007 employees throughout the world.

Anchor has about 2,400 employees, with 1,300 in Nevada. Most of those workers are in Las Vegas, said Anchor spokesman Howard Stutz.

No job cuts are planned, noted IGT investor relations specialist Bob McIver.

"Typically you've got to let these things shake out," McIver said. "We're always looking for engineering personnel."

Anchor Gaming President and Chief Executive Officer T.J. Matthews is set to become IGT's chief operating officer.

Anchor shareholders will receive one share of IGT stock for every share they have in Anchor, which develops and distributes slot games, operates Nevada slot routes at bars and taverns, has a pair of Colorado casinos and operates seven state lotteries and the Pala casino 35 miles north of San Diego.

The deal will give IGT the creative energies of Anchor, which through its marketing director Randy Adams has been a leader in the development of video-game-style slot machines.

He developed the Wheel of Gold slot machine that was the forerunner to the "Wheel of Fortune" game, which is based on the long-running TV show, and with 13,000 machines in the United States is the most widely displayed slot game in the country.

The IGT-Anchor joint venture for "Wheel of Fortune" generates about 70 percent of Anchor's yearly cash flow.

IGT controlled as much as 75 percent of the U.S. slot business just a few years ago with its Double Diamond and Red, White and Blue machines. But Illinois-based WMS cut into IGT's dominance, reducing that figure to about 65 percent with its Reel 'Em In and Monopoly games that melded high tech audio and video.

IGT countered in 1999 with the hiring of Joe Kaminkow, a former Sega Pinball video game designer, who has developed a series of new slot games, including versions of "Austin Powers," "I Dream of Jeannie," and "Addams Family."

IGT shares were up 73 cents Tuesday, closing at $67.43 on the New York Stock Exchange.

Anchor shares were up 77 cents Tuesday, closing at $62.27 on the Nasdaq. The company's stock will stop trading after the deal's completion

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