Activists Take On Multimedia Games

One activist hedge fund manager is following up the efforts of another at Multimedia Games Inc., an electronic casino and lottery game maker.

Late Wednesday, activist fund manager Dolphin Limited Partnership said in a release it sent a letter to Multimedia’s board encouraging it to seek a sale or merger as a way of maximizing profits. Dolphin owns about 900,000 shares of Multimedia, about a 3% stake.

Dolphin’s efforts come after hedge fund manager Emanuel Pearlman began pressing the company to consider share-enhancing changes last year. In October, 2006, Multimedia Games agreed to name Pearlman and another of his allies as directors after the dissident shareholder agreed to cancel a proxy contest intended to nudge the company into a formal auction.-- Ron Orol