International Game Technology dissident investor Jason Ader dropped his bid for a board seat at the company, while continuing to back a slate of candidates.
Ader, who runs New York-based Ader Investment Management LLC, said he intends to nominate three candidates, according to a regulatory filing today. He said the group believes IGT is undervalued as a result of the company’s lack of focus on its core slot machine business, poor capital allocation decisions and management that is inexperienced in gaming.
“We are convinced our slate will make a major improvement in this company,” Ader said in a press release.
IGT, the world’s largest slot-machine maker, said this week that Ader, a former casino analyst, would propose four new directors to the Reno-based company’s board, including himself. According to Ader’s filing today, he will nominate the three others, but not himself.
Juda Engelmayer, a spokesman for Ader, said his group had presented the investment manager as an option and later “made a tactical decision to nominate a ‘short slate’” of directors.
The Ader group will nominate Charles Mathewson, IGT’s former chairman and chief executive officer, Raymond J. Brooks, a former insurance industry executive, and Daniel B. Silvers, an executive at Ader’s firm, its filing said.
IGT’s current chief executive, Patti Hart, said in an interview this week that she and the company’s current board oppose the new nominees.
IGT rose 0.1 percent to $14.98 at the close in New York. The shares have gained 5.7 percent this year.