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Intra-day alert on INTW at $3.75 just after it spiked to $4.25 on news of recieving $20 million investment...This news appeared to be great, but, the stock has done nothing but sell off since!

Jackpot Enterprises Invests $20 Million in InterWorld

New York, Oct. 12 (Bloomberg) -- Jackpot Enterprises Inc., an operator of Nevada slot machines that's transforming itself into an Internet investment company, will invest $20 million in InterWorld Corp., a maker of software that helps companies do business over the Internet.

Jackpot, which is changing its name to J Net Enterprises Inc., will get convertible preferred stock in InterWorld. It will also get warrants to buy additional shares at $7.25 each. The agreement limits Jackpot's stake in InterWorld to 19.99 percent.

Jackpot, based in Las Vegas, also said it acquired a $12.3 million loan made to InterWorld Chairman Michael Donahue by Salomon Smith Barney. The loan is secured by Donohue's shares in New York-based InterWorld.

The shares of Jackpot, which said in July it will sell its slot machine business to closely held E-T-T Inc., fell 56 cents, or 7 percent, to 7.75 on the New York Stock Exchange. They have fallen 17 percent in the past year. Shares of InterWorld, which had 1999 revenue of $41 million, fell 19 cents, or 6 percent, to 3.19 on the Nasdaq Stock Market. They have fallen 96 percent this year.