WMS Industries to acquire Bally
In a development that disappointed investors, WMS Industries Inc. said yesterday that it had reached a definitive agreement to acquire Bally Gaming International in a stock swap valued at about $116 million. The price is not only lower than the original bid by WMS, but it is also well below an offer made earlier this week by Alliance Gaming Corp.
Under the terms of the revised offer by Chicago-based WMS, Bally shareholders will receive 0.55 share of WMS for each share of Las Vegas-based Bally.
In April, WMS made an offer of 0.60 share of WMS for each Bally share. That offer expired last month. Alliance offered to buy the company for $134.4 million on Monday.
Shares of Bally fell 62.5 cents in Nasdaq trading yesterday, to $10.50.
Beech lands $7 billion contract
The Air Force yesterday awarded a contract valued at about $7 billion to Beech Aircraft Corp., a unit of Raytheon Corp., to develop and deliver a new aircraft training system for use by the U.S. Air Force and Navy.
The Air Force said $7 billion had been earmarked for manufacturing development, production and initial support for the Joint Primary Aircraft Training System, or JPATS.
Adobe to buy Frame Technology
Adobe Systems Inc., a graphics software maker, said yesterday that it will buy Frame Technology Corp. in a stock deal worth about $507 million.
The acquisition will add software for creating technical documents on advanced workstations to Adobe's product lineup.
Leeds Federal raises dividend
Leeds Federal Savings Bank of Baltimore said yesterday that it increased its quarterly dividend by 1 cent, to 15 cents per share. The dividend will be paid July 19 to holders of record July 5.
Mortgage rates edge lower
Home mortgage rates edged lower this week, with the 30-year fixed-rate loan rate falling to an average of 7.53 percent from 7.55 percent last week, the Federal Home Loan Mortgage Corp. said yesterday.
U.S.-Canada country music accord
Country Music Television has reached a tentative agreement with a Canadian rival to create a single country music network, ending a dispute over access to the Canadian market, the Office of the U.S. Trade Representative said yesterday.
The dispute began in January after the Nashville, Tenn.-based network was bumped from Canadian airwaves to make room for New Country Network of Calgary, Alberta.