Bally Gaming named in two stockholder class action suits.LAS VEGAS--(BUSINESS WIRE)--June 27, 1995--Bally Gaming International, Inc. (NASDAQ:BGII BGII - Baldur's Gate II: Shadows of Amn (computer game)) today announced receipt of two stockholder class action suits -- one seeking to enjoin enjoin v. for a court to order that someone either do a specific act, cease a course of conduct, or be prohibited from committing a certain act. To obtain such an order, called an injunction, a private party or public agency has to file a petition for a writ of injunction, serve it on the party he/she/it hopes to be enjoined, allowing time for a written response. a merger agreed on last week with WMS Industries Inc., the other seeking to enjoin a merger proposed by Alliance Gaming Corporation. Bally Gaming and WMS Industries Inc. recently announced the signing of a definitive merger agreement, under which Bally Gaming shareholders will receive 0.55 shares of WMS for each outstanding share of Bally. The announcement followed a due diligence and negotiation process that began April 18 when the companies signed an agreement in principle. In a joint statement, the companies said that the "combination of WMS and Bally Gaming's domestic gaming machine business creates a powerful competitive force in the gaming industry." Alliance Gaming last week publicly announced a desire to acquire an additional 60 percent of Bally Gaming shares for cash and the balance of Bally shares for Alliance common stock. "Our financial advisor has concluded that even if Alliance were successful in raising the necessary funds, the overall value of the Alliance proposal was less than the value that the Bally Gaming shareholders would receive in the synergistic business combination with a very profitable and successful WMS," a Bally Gaming spokesman said. The suit that seeks to enjoin a merger proposed by Alliance names Bally Gaming, its directors, and Alliance, a Bally stockholder. The suit also seeks participation of a stockholders' committee consisting of members of the class and their representatives in any sale process. The suit seeking to enjoin the WMS merger claims, among other things, that Bally was not properly "exposed for sale" and that Bally and its directors, the defendants, "should be made to meet with and cooperate with Alliance." Both suits were filed in Delaware Chancery Court. Bally Gaming is a Delaware corporation. A Bally Gaming spokesman stated that both lawsuits are entirely without merit and that the Company will vigorously contest both actions. Bally Gaming is engaged in the design, manufacture, and sale of electronic gaming machines and systems through subsidiaries in Las Vegas and Reno, Nevada, as well as Berlin and Hanover, Germany. CONTACT: Bally Gaming International Inc. Neil Jenkins, 312/992-1144 or Keuper Public Relations Philip Keuper, 212/207-1576 |
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