Friday, Dec. 21, 2001 | 10:53 a.m.
CARSON CITY -- The merger of slot machine maker International Gaming Technology of Reno and Anchor Gaming of Las Vegas moved a step closer to completion Thursday.
The state Gaming Control Board and the state Gaming Commission gave unanimous approval to the proposed $1.4 billion deal, which officials hope to close by the end of the year.
Shareholders of both companies approved the merger this week with more than 98 percent approval, IGT and Anchor officials said.
Attorney Bob Faiss, representing IGT, told state regulators that these two companies were dissimilar. The merger, he said "will create a more diversified company" that can meet the challenges in a changing world.
IGT focuses on the development and manufacture of slot machines and is a world leader in its field. Anchor is best known for its popular Wheel of Fortune slot machine.
It also has two casinos in Colorado; manages an Indian casino in San Diego; has slot machine routes in Nevada; provides video lottery systems in eight states; and is involved in the manufacture of equipment for 130 horse race pari-mutuel systems.
Besides paying Anchor shareholders in stock, IGT intends to pay off an $85.5 million bank debt of Anchor and assume $250 million in notes.
A spokeswoman for IGT said this merger will give it a $6 billion market capitalization, making it the biggest gaming company in North America.
Thomas Baker, president and chief executive of IGT, said the deal has gained the approval of the Federal Trade Commission, the Securities and Exchange Commission and from 12 other states.
Gaming Commissioners Arthur Marshall and Augie Gurrola, both of Las Vegas, said they were pleased to see there were no special deals to benefit management in the merger. T.J. Matthews, chairman and CEO of Anchor Gaming, said there were no "side deals." But he added the merger will help both stockholders and management. Matthews will become chief operating officer of the new firm.
Gaming Commissioner Sue Wagner of Reno and Control Board member Bobby Siller of Las Vegas both praised IGT for the diversity of its work force. Baker told the board that 28 percent of its 2,900 employees were minorities and 40 percent were females.
Siller told Baker he has "reached out to see diversity." He said this was providing opportunities to everyone. Wagner said she was happy to see so many women in top management jobs.
Control Board member Scott Scherer said there was not much overlap between the two firms and combining them will not be "anti-competitive."
Baker said the companies wanted to complete the merger by the end of the year for tax advantages. Any delays, he said, might mean they would have to issue another proxy and have shareholder meetings.
Other approvals by the commission Thursday included:
Sale of the landmark Sharkey's Nugget Casino in Gardnerville, owned 31 years by Milos "Sharkey" Begovich, to Harold D. Holder, who owns clubs in Sparks, Hawthorne and Winnemucca.
Top Gun Gaming, LLC, owned by Troy Defrees-Parrott and John Preston Meekins, for license as a manufacturer and distributor of slot machines. The company developed the Betty Boop slot machine theme and plans to move its headquarters from Arizona to Nevada. Another company owned only by Defrees-Parrott called Inspire Technology was also licensed as a manufacturer and distributor of slot machines.
The Club Cal-Neva in Reno to open its fourth satellite race book and sports pool in Clark County. It would be in the Bourbon Street Hotel.
Brian D. Ogaz of Los Angeles to be licensed as senior vice president of the Hard Rock Hotel & Casino in Las Vegas.
Alliance Gaming Corp. of Las Vegas for approval to make a public offering. The approval of the shelf offering is good for one year.
William P. McBeath as president and chief operating officer at the Mirage casino-hotel in Las Vegas.
Terrible's Town Casino in Searchlight for 75 slot machines.
Herbst Gaming Inc. to be converted into a publicly traded corporation. The company owns casinos in Las Vegas and Pahrump and slot machine businesses. The officers are Edward, Timothy and Troy Herbst who each own 33 1/3 percent.
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