More on the Scientific Games-Bally Technologies deal


The combination of Scientific Games (NASDAQ:SGMS) and Bally Technologies (NYSE:BYI) will create a gaming and lottery juggernaut able to stir up $220M in annual cost synergies and $25M in annual capex spending savings, according to the companies.

The pairing will also see "accelerated utilization" of various tax attributes on U.S. income which will help the bottom line.

The lush premium paid for Bally could give a lift sector peers Multimedia Games (NASDAQ:MGAM) and International Game Technology (NYSE:IGT) today.

Premarket: IGT +1.9%, MGAM no action yet.

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Comments (6)
  • arbtrader
    , contributor
    Comments (523) | Send Message
     
    IGT may be a great idea if you're a muppet...IGT already has an announced takeover.
    1 Aug 2014, 09:09 AM Reply Like
  • dave403
    , contributor
    Comments (43) | Send Message
     
    doubt IGT gets any pop as it already signed a deal to sell itself for $18.25/share...
    1 Aug 2014, 09:53 AM Reply Like
  • popeye305
    , contributor
    Comments (953) | Send Message
     
    And not only that, but huge break-up fees makes a near certainty that no better suitors are likely to emerge, especially since the architects of destroying shareholder value at IGT, i.e. Satre and Hart just coincidentally (lol) nailed down cushy jobs at the newly formed company. Proving once again just how much life is not really fair. Maybe, just maybe, class action lawsuits by IGT shareholders will make this a little more interesting. Stay tuned.
    1 Aug 2014, 11:13 AM Reply Like
  • fire0nice228
    , contributor
    Comments (85) | Send Message
     
    Why is it hovering aroudn 78 bucks when the buyout is over 83? Cant profit be made if anyone buys shares up to the buyout price?
    1 Aug 2014, 03:11 PM Reply Like
  • popeye305
    , contributor
    Comments (953) | Send Message
     
    fireOnice228

     

    The reason Bally (and the IGT buyout) stock price is considerably under the buyout number is because given the industry it is in with various state and other regulatory agencies involved in granted an approval of a casino related company, this deal will take over a year to close. The present value today of an $83. dollar deal is well, according to the arbs guys today 78 who make sure that at the right price it pays to go in today to wait for more money later, or in reality to get in and get out sooner and not wait for the actual Closing. By example, IGT was $17.50 last week with an $18.25 stock price at Closing. Now it is approx. $16.78, so if it recovers to even $17.25 next week, an arb who bought yesterday and sells at $17.25 next week made a little money. If both deals could Close sooner the spread would be much narrower.
    2 Aug 2014, 08:50 AM Reply Like
  • Special Situations and Arbs
    , contributor
    Comments (1397) | Send Message
     
    fireOnice228

     

    Yes of course. Assuming the deal closes. SGMS is a smallish company buying a big company. The acquiring stock went from up a lot to down today.
    Not saying this won't close but not the easiest arb out there
    1 Aug 2014, 03:44 PM Reply Like
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