Bali Out Of IGT Competition
As the discussion of a possible sale intensified, an analyst abandoned Bali Technologies Inc BYI as a potential bidder for gaming supplier International Game Technology Inc IGT.
IGT confirmed in a statement on Monday that the company is considering selling itself, saying it is “currently” exploring “a wide range of strategic alternatives.”
A U.S.-based Stern Age broker said he did not think Bali Technologies was interested in a merger with IGT “given potential anti-trust issues.”
“However, a potential sale of IGT should remove the equity multiple of BYI, which has recently been pegged by IGT,” analyst David Bain said in a report released Monday.
“IGT’s acquisition by a private equity firm or other unlisted U.S. corporation would significantly reduce the space for an investable supplier, benefiting from BYI,” Mr. Bain wrote.
The consolidation that has already occurred in the market could lead some potential buyers to face anti-trust hurdles in pursuing IGT. Private equity firms, on the other hand, could face financing challenges stemming from a lengthy regulatory review.
Credit Suisse analysts said last week that if IGT goes ahead with the sell-off process, we believe Bali Technologies is unlikely to close the deal given the current level of leverage, potential redundancies in certain business lines (systems) and regulatory constraints, not to mention the recent acquisition of DragonPlay.
Four companies are seeking bids, Reuters reported, including lottery operator GTech SpA and private equity firm Apollo Global Management LLC, a co-owner of casino operator Caesars Entertainment. 카지노사이트
So far, only GTech has confirmed talks with IGT. The company said it hired an adviser to negotiate a deal.