Brief: Station urges rejection from mystery firm

Tuesday, Oct. 13, 1998 | 11:47 a.m.

"I don't know who they are or what they're trying to do," Station Chief Financial Officer Glenn Christenson said today. "It's a very strange situation."

He said Station learned of IG Holdings' unsolicited tender offer only after investors called to inquire about it. Station stock was trading at $5.31 a share when IG Holdings launched its $4.13 per share offer on Sept. 30. The stock closed Monday at $4.74 and was up about six cents in mid-day trading today.

Christenson said the offer is inadequate and may violate federal and state securities laws.

"The methods they've used seem to be completely contrary to requirements of a legal and typical tender offer," he said.

Station has been unable to obtain any information about IG Holdings, which also made a tender offer to buy 4.9 percent of some Station bonds.

Station said three other non-gaming public companies in other parts of the country have also been targeted for below-market offers by IG Holdings.

A source said short sellers may be trying to cover their positions by acquiring shares at below-market prices.