Stock hits 52-week high

Friday, Dec. 28, 2001 | 10:44 a.m.

The stock of International Game Technology of Reno shattered its 52-week high in heavy trading Thursday, as it prepared to close on a $1.5 billion merger with Anchor Gaming of Las Vegas.

IGT closed Thursday at $71.03, up $1.77, a 2.6 percent gain on the day. This followed a 2.9 percent gain on Wednesday. The slotmaker's previous 52-week high was $69.50.

Just before Wednesday's close, Anchor announced it would sell its interest in the management company running Pala Casino in San Diego County for $77 million by the end of January. IGT announced almost simultaneously it would officially acquire Anchor on Sunday. On Thursday morning, Goldman Sachs and Merrill Lynch both hiked earnings estimates on the company to account for the Anchor acquisition. Goldman Sachs also raised its price target for IGT from $70 to $85.

Dave Ehlers, chairman of Las Vegas Investment Advisors, attributed IGT's gains to the now-certainty of the IGT-Anchor merger, and the increased earnings the buyout will give IGT. He also said the terms of the Pala sale were "very favorable," and could have helped spark activity in the stock.

IGT advanced 43 cents to $71.46 this morning. The stock has doubled in value since hitting its 52-week low on Sept. 21.