Shares in International Game Technology (IGT) climbed by more than 14 per cent in New York Monday following reports that the US gaming supplier is engaged in exploratory talks over a potential sale of its business.
According to Reuters, IGT has hired Morgan Stanley to assess the potential for a sale. This follows the loss of nearly a third of the company’s share value over the past year.
The news sent the company's shares climbing 14.39 per cent in trading Monday, its biggest single day gain in more than five years, giving IGT a market capitalisation of more than $3.5bn. Despite the gain, the shares are still down nearly 18 per cent over the past year.
An acquisition of IGT could become one of the largest ever deals in the gaming industry and would continue the recent period of consolidation that has involved IGT’s major rivals including Bally Technologies and WMS Industries.
Bally acquired SHFL entertainment in July 2013 for $1.3bn, while Scientific Games acquired WMS Industries in January of that year for $1.5bn.
Any deal for IGT would be subject to various antitrust issues as well as regulatory approvals across a significant number of jurisdictions.
Shares in International Game Technology Inc (Co. Data) (NYSE:IGT) closed in New York Monday up 14.39 per cent at $14.31 per share.