Shares in Int'l Speedway Corp. were up 2 7/8 yesterday,
to close at 52 3/4, after news of its agreement to acquire
Penske Motorsports (See THE DAILY, 5/11). Shares in Penske
rose 5 3/4, to close at 48 7/8 (WALL STREET JOURNAL, 5/12).
On ABC's "World News Tonight," Peter Jennings reported on
the sale and said the move gives "the combined company
enormous leverage to negotiate sponsorship and television
rights" (ABC, 5/11). In Indianapolis, Bill Koenig writes
that industry analysts said that the "massive motorsports
merger puts pressure on independent operators of racetracks
-- even the Indianapolis Motor Speedway -- to get bigger or
sell out." The ISC/Penske deal "means that virtually any
owner of a major track can sell out at a huge profit." J.C.
Bradford motorsports analyst Breck Wheeler: "At these
prices, it puts everybody in play." NC-based Speedway
Motorsports Inc. has also "been aggressively seeking
acquisitions, while Dover Downs is viewed as a potential
takeover target." Koenig adds that ISC's deal "could
affect" the split between CART and the IRL, as the company's
execs "are urging a resolution of the divide." A unified
series "could increase ISC's profits," as it hosts both
series (STAR-NEWS, 5/12). Shares in Dover Downs Ent. rose
16% "on optimism the racetrack operator could be acquired."
Dover Downs, which holds four tracks, rose 2 9/16 to 19 1/16
in trading of 348,300, "more than five times the three-month
daily average." Wheeler: "Dover becomes the most eligible
bachelor out there" (BLOOMBERG NEWS, 5/12).
STRONG QUARTER: In Charlotte, Audrey Williams reports
that SMI reported first-quarter earnings that "nudged ahead
of Wall Street's expectations Tuesday." SMI earned $2.008M,
or $.05 a share, up from a year ago loss of $2.9M. Not
"counting the special charges" related to its purchase of
the Las Vegas Motor Speedway, SMI earned $3.4M, or $.08 a
share, $.01 higher than expected. Wall Street "responded
favorably," as SMI shares were up $1.31 1/4 yesterday and
closed at $41.43 3/4 (CHARLOTTE OBSERVER, 5/12).
PENSKE'S READY TO SPEND: In Detroit, Becky Yerak
reports that Roger Penske said yesterday at his company's
annual meeting that "at least some" of the money he receives
from the sale of his racetrack business will be used to make
acquisitions (DETROIT NEWS, 5/12).
