Gaming briefs for Feb. 5, 2004

Thursday, Feb. 5, 2004 | 11 a.m.

Takeover advances

CARSON CITY -- The state Gaming Control Board on Wednesday recommended approval of the application of Alliance Gaming Inc. of Las Vegas to acquire Sierra Design Group of Reno, which makes electronic gaming devices for Indian reservations.

Alliance attorney Mark Lerner told the board the company was acquiring "considerable talents and technology" in Sierra Design and will help with the expansion in new markets.

The deal, when announced, said Alliance would purchase shares of Sierra Design for about $27 million in cash and 735,000 shares of Alliance gaming stock valued at $18 million. Over three years following the closing, Alliance would pay up to $95 million in equal portions of cash and stock if Sierra meets certain performance goals.

Sierra is licensed to supply gaming devices to Indian casinos in Washington, Oklahoma, Florida and Alabama.

Hotel giant's profit falls

WHITE PLAINS, N.Y. -- Starwood Hotels & Resorts Worldwide Inc., owner of the Sheraton and Westin chains, today said fourth-quarter profit fell 4.4 percent, less than analysts expected, because travel is increasing. Profit this year also will fall less than forecast.

Net income dropped to $87 million, or 42 cents a share, from $91 million, or 45 cents a share, in the year-earlier period, when one-time gains doubled profit. Per-share profit was 10 cents more than the average estimate. Revenue rose 3.1 percent to $1.2 billion, the company said in a statement.

More hotel bookings and unit sales from its timeshare business helped Starwood. A decline in the dollar this year brought more foreign visitors to U.S. markets including New York and Hawaii, Chief Executive Barry Sternlicht said this month.

In Las Vegas, Starwood is part of a partnership planning to buy the bankrupt Aladdin resort on the Strip. There's also an 825-room Westin-branded hotel-casino, the Casuarina Hotel & Spa, on Flamingo Road near the Strip.