Photo: Bloomberg via YouTube
Nowadays on Wall Street, when you go to war, you present your case… thoroughly.So naturally, the battle between hedge fund manager Jason Ader (and his allies) and IGT (the biggest slot machine company in the world) is no exception.
Ader, who owns 3% of IGT, started a fight when he wrote a letter to IGT’s management saying that he wanted to replace four (now three) of the company’s board members (check out his Rescue IGT website here).
IGT has answered with a resounding ‘no’, and since the company services some of the biggest names in the casino world, Las Vegas’ elite are being forced to pick sides or get out of the way.
Steve Wynn, for example, is throwing his weight behind Ader, Sheldon Adelson has chosen to stay out of the way.
On to Ader’s argument. He says that IGT lacks good corporate governance and that the three board members he wants to replace lack experience in financial markets and/or the casino industry.
He also says that the company has been throwing away money senselessly. For example, IGT acquired online gaming company DoubleDown for $500 million, and he believes IGT could’ve made a similar product for $50-60 million.
See if you agree.
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