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Monday, June 16, 2014

Italy lottery group GTECH in talks to purchase International Game, (NYSE: IGT)

Italian lottery operator GTECH is in preliminary talks to purchase Las Vegas-based International Game Technology (IGT) in a cash and shares deal that would make it a significant player in the casino slot machine business.GTECH said on Monday it had hired advisers to help it negotiate a deal, confirming what sources told Reuters last week. It gave no value for the potential bid.IGT decided to seek a buyer after its stock slid by almost a third because of weak demand in the gaming market. Three rival bidders plan to make formal offers alongside GTECH, according to people familiar with the situation, but none have gone public with their plans."This transaction could potentially involve the use of a mix of cash and equity," GTECH said, adding it would not need to sell new shares to raise the cash for the deal.

International Game Technology (IGT) is a global gaming company specializing in the design, development, manufacture, and marketing of casino-style gaming equipment, systems technology, and game content across multiple platforms: land-based, online real-money and social gaming. Shares of IGT traded higher by 10.52% or $1.51/share to $15.86. In the past year, the shares have traded as low as $12.14 and as high as $21.20. On average, 5796010 shares of IGT exchange hands on a given day and today's volume is recorded at 27768652.