Chairman says it was “time to step down”

Tuesday, Sept. 26, 2000 | 11:05 a.m.

Anchor Gaming Inc. Chairman Stanley Fulton said Monday he was resigning as chairman because "it was the right thing to do."

On Monday, Anchor announced Fulton and his family were selling their stake in Anchor for $306 million. In connection with the transaction, Fulton will step down as chairman of the company he founded 12 years ago, along with two family members who served as directors.

"It would be inappropriate of me to take this action (selling his shares) and stay on as chairman," Fulton said. "This transaction was the right thing to do for team Anchor. It was the right transaction to do for the remaining shareholders, and it was the right thing to do for the Fulton family.

"I'm 69, close to 70 years old. There's a time to step down."

Though two of his children serve on the company's board, Fulton said neither was involved full-time in the gaming industry, and didn't want to assume the chairman's role.

The Fultons controlled 5.72 million shares of Anchor as of last October, about 48 percent of the company's outstanding stock. The sale will reduce their holdings to 539,600 shares.

The Fulton family will receive $240 million in cash and $66 million in promissory notes for 4.6 million shares they are selling back to the company. The $66 million in promissory notes will be exchanged for the Sunland Park Racetrack & Casino in New Mexico, as well as the 25 percent interest Anchor owns in a Massachusetts horse-racing facility.

The transaction is expected to close by the end of October. T.J. Matthews, the company's chief executive, will assume the chairman's title.