Silicon Gaming buyout discussed

Monday, Nov. 13, 2000 | 11:09 a.m.

International Game Technology of Reno is discussing a buyout of Silicon Gaming Inc., a small slot manufacturer with offices in Palo Alto, Calif., and Las Vegas.

The proposed purchase price is $45 million, or between 7.5 cents and 9.5 cents per share, Silicon Gaming said. A definitive agreement between the companies hasn't been reached, and both sides say an agreement may not ultimately be struck.

"The reason (IGT) is interested is obviously not their financial position, but some of (Silicon's) people," said Dave Ehlers, chairman of Las Vegas Investment Advisors. "They have some valuable game creators or engineers they want to acquire, and they're not paying very much for this thing.

An IGT official said there have been no new developments in the talks since the possible deal was first announced in late October. Silicon officials couldn't be reached for comment.

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