Friday February 1,2013 : SPOKE IN THE WHEEL FOR SCIENTIFIC GAMES WMS ACQUISITION?
Fiduciary duties of directors investigated
Following the announcement of Scientific Games Corporation’s acquisition of WMS Industries , legal entity The Pomerantz Firm was quick to respond with the notification of an investigation, which it says has been initiated on behalf of WMS Industries’ investors, into whether the company’s directors breached their fiduciary duties by "failing to adequately shop the Company and maximise shareholder value".
The Pomerantz Firm said the price to EBITDA and net income multiples are below those of comparable transactions and synergies my not be fully reflected in the $26.00 per share in cash for each share of WMS Industries common stock.
In related news, Jason Ader – chief executive officer of Ader Investment Management (AIM) and the instigator of an acrimonious proxy tussle at International Games Technology (IGT), was quick to take another swipe at IGT’s current strategy saying: "We believe that today’s (Thursday) announcement that Scientific Games Corp. agreed to buy WMS Industries Inc. demonstrates the value that smart strategic investors place on the core casino gaming equipment business.
“Lorne Weil and Scientific Games have always been disciplined acquirers of assets and we believe that this acquisition reaffirms AIM’s thesis that the slot machine industry is alive and poised for growth."
Ader went so far as to launch the RescueIGT.com website this week describing the destination as a hub for IGT investors to access detailed information regarding the value destruction overseen by the current Board and management in a push to get investors to elect Ader’s nominees to the Board of Directors at the Company’s AGM scheduled for March 5, 2013.