Multimedia Games shareholder wants company to merge or sell

By Lisa Kerner

Charlotte, N.C., Nov. 28 - Multimedia Games, Inc. shareholder Dolphin Limited Partnership III, LP believes a sale or merger of the company "would enable shareholders to monetize the company's near-term cash flow pipeline."

Dolphin made its comments in a Monday letter to Multimedia's board. The letter was included in a Dolphin news release.

Dolphin said that in the six months following Multimedia's announcement of a Dutch auction tender offer for 2 million shares at $12.55 each, the company's shares have fallen some 40% to $7.51 while its peers have risen an average of 17%.

As previously reported, Multimedia accepted 1,992,032 shares, or about 7%, of its common stock for a purchase price of $12.55 per share, for a total of about $25 million, in the modified Dutch auction tender offer that ended July 10.

In closing, Dolphin suggested Multimedia shareholders would "benefit by hearing the board's current view of how best to maximize value during the company's fourth-quarter conference call in early December."

Dolphin owns 900,000 shares of the Austin, Texas-based company's stock. Multimedia develops systems, content, electronic games and player terminals for the Native American and other gaming markets.

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