Morgan Stanley has been hired by IGT as it pursues a sale, which has been in the works for more than two months.
There is interest from private equity firms and gaming companies, though a deal could be more than a year away because of the necessary regulatory approvals.
IGT, which has a market cap of $3bn, is considering a sale amid difficult US gaming trends and the continued consolidation of other companies in the gaming supplier industry.
Steve Wieczynski of Stifel said the news isn’t a surprise and estimates IGT could be sold in the low $20 a share range. Wieczynski said he has long assumed IGT’s depressed valuation and private equity investors’ affinity for the gaming industry would lead to interest in a potential purchase.
IGT’s stock shot up 14.39 per cent yesterday.
Source: Fantini’s Gaming Report.
