GTECH and IGT in acquisition talks

Starting the week off with a bang is the announcement by gambling and lottery supplier group GTECH that it is in ‘preliminary’ talks with contemporary U.S. firm International Game Technology with the objective of buying the American company.

“This transaction could potentially involve the use of a mix of cash and equity as consideration,” GTECH told the Reuters news agency, adding it did not anticipate needing a cash call to fund the acquisition.

GTECH said it had hired advisers to help it in the talks.

In a coordinated response, IGT issued a rather wooly statement advising:

“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.”

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