Why Shares of International Game Technology Headed to the Next Level
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of International Game Technology were hitting the jackpot today, gaining as much as 13%, and finishing up 11% after receiving a number of bids for the company in auction.
So what: Among the companies interested in acquiring the slot-machine maker are GTech SpA, and billionaire Ron Perelman's MacAndrews & Forbes Holdings. Reports emerged on Monday that International Game Technology had hired Morgan Stanley to help it find a buyer, and Apollo Global Management and the Carlyle Group also put in preliminary bids. IGT shares had jumped 15% earlier in the week after it announced it was exploring a sale.
Now what: Considering the number of interested parties, shares of International Game Technology could easily move higher. Of the potential buyers, GTech seems the most natural fit as it's the world's largest operator of lotteries, running Italy's national lottery, and several U.S. state lotteries. No price tag has been associated with any of the offers, but the multiple bidders could easily lead to a higher offer. I'd expect shares to move up as negotiations move forward.
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The article Why Shares of International Game Technology Headed to the Next Level originally appeared on Fool.com.Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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