Merger termination fee demanded

Tuesday, May 1, 2001 | 10:47 a.m.

A Las Vegas casino equipment supplier today demanded a $1 million termination fee as a result of a failed merger deal.

Paul-Son Gaming Corp. signed a letter of intent with Etablissements Bourgogne et Grasset SA, a French company, and the Bud Jones Co. Inc., its U.S. subsidiary, in late January.

Under terms of the agreement, if privately held Bourgogne et Grasset, Beaune, France, or Las Vegas-based Bud Jones did not complete the merger by April 30, Paul-Son would be paid a $1 million termination fee.

Eric Endy, chairman of Paul-Son, said he regretted demanding the termination fee, but his company was protecting the interests of its shareholders.

The failed merger, a stock-for-stock deal, would have resulted in Bourgogne et Grasset and Bud Jones becoming wholly owned subsidiaries of Paul-Son, with Gerard Charlier, their president and chief executive officer, becoming chairman of the board and chief executive officer of Paul-Son. Endy would have become vice chairman of the board.

Paul-Son, which has a manufacturing plant in San Luis, Mexico, supplies a variety of casino table game equipment in the United States. Bourgogne et Grasset has a similar operation supplying casinos in Europe and Asia.