BALLY <BLY> TO TAKE 17.3 MLN DLR 1ST QTR CHARGE
Bally Manufacturing Corp said it
expects a charge to earnings in the first quarter of this year
of 17.3 mln dlrs as a result of its deal to buy back 2.6 mln of
its common shares from real estate developer Donald Trump.
    In a filing with the Securities and Exchange Commission,
the Chicago-based hotel, casino, gambling and amusement concern
also said the anticipated charge against first quarter earnings
will not be deductible for federal income tax purposes.
    Under a February 21 deal, Bally agreed to buy 2.6 mln of
the 3.06 mln shares held by Trump at 24 dlrs a share, or 62.4
mln dlrs, while Trump agreed not to try to seek control of
Bally.
    The agreement also calls for Bally to pay Trump another 6.2
mln dlrs for certain agreements, claims and expenses related to
his purchase of the Bally common stock, Bally said.
    Trump agreed not to buy any more Bally stock or to try to
seek control of the company for 10 years, it said.
    Bear, Stearns and Co Inc signed a similar standstill
agreement with Bally for three years, Bally said. But it can
still deal in Bally stock as a broker, it said.
    The deal also obligates Bally to buy Trump's remaining
stake in the company for 33 dlrs a share if the stock price
does not reach that level by February 21, 1988, it said.
 Reuter
