Gtech in Talks With International Game Technology - KTVN Channel 2 - Reno Tahoe News Weather, Video -

Gtech in Talks With International Game Technology

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Italian lottery operator Gtech says that it is in preliminary talks with Las Vegas casino gaming company International Game Technology about a potential deal.
 
Gtech did not specify what type of deal it was seeking.
 
IGT confirmed in a statement that it was currently exploring strategic alternatives, but it says no decisions have been made yet. It doesn't plan to talk about the possible deal until the board makes a decision.
 
Rome-based Gtech SPA manages lotteries in the U.S., Italy, Spain and South America. IGT makes slot machines for casinos.
 
Shares of IGT are down 16 cents, or 1 percent, to $15.70 in afternoon trading.

IGT released this statement on Monday:

“IGT regularly considers, and on occasion explores, a broad range of strategic alternatives, including but not limited to business combinations, changes to our capital structure and adjustments to our portfolio of businesses, with the goal of maximizing shareholder value. The IGT Board of Directors and senior management are currently engaged in such an exploration, but no decisions have been made by the Board regarding any particular alternative available to the Company and there can be no assurances that any transaction or other strategic change will be entered into as a result of the current exploration of alternatives. IGT does not intend to discuss or disclose developments with respect to this general subject unless and until the Board has approved a definitive course of action.”

On June 10th, Reuters reported that IGT had hired Morgan Stanley to explore sale possibilities. It said that IGT had been working on sale for more than two months and had attracted interest from other unidentified gaming companies and private equity firms.

Reuters adds that IGT decided not to seek a buyer because of the company’s decreasing stock value. Plus, the sale process could also be challenged because of international gaming merger approvals, which could take more than a year to complete.

IGT has 59 offices worldwide including one in Reno.  

Morgan Stanley did not provide a comment to the news agency.

(The Associated Press also contributed to this report.)
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