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GTECH sale closer as more states approve

GTECH CorporationGTECH Corporation: GTECH sale closer as more states approve

The sale of West Greenwich-based GTECH Holdings Corp. to Italian lottery giant Lottomatica SpA this week inched toward completion.

Lottomatica said that the state lotteries would continue existing contracts with GTECH, which it plans to buy in a $5 billion deal that would create the world's biggest lottery operator.

Lottomatica had asked various U.S. states to confirm that the deal would not hurt existing lottery concessions when it launched the takeover earlier this year.

Most states asked auditing firms to carry out background checks, but Texas asked police to investigate and there, concerns have been voiced over GTECH concession contracts in Brazil, Poland, the Czech Republic and Trinidad-Tobago.

Tuesday, in a filing with the U.S. Securities and Exchange Commission, GTECH reported that "the Texas Lottery Commission would not take any action ... in connection with the merger."  Investors had worried that the report and potential action by the Texas lottery commission could hinder the takeover.

Wednesday, at a public forum in Providence, Rhode Island investigators announced similar findings. "The State Investigative Team has uncovered no information ... that under Rhode Island law or regulations would warrant the Rhode Island Lottery withholding its consent for the proposed transaction," declared the July 25 report of a team led by the Providence law firm of Brown Rudnick Berlack Israels.

(Rhode Island's full, 147-page due diligence report can be found online at www.rilot.com.)

Thursday, Lottomatica announced the Missouri Lottery had given its approval the day before, and said it would not cancel existing contracts. Similar approvals had already been granted by the U.K. and California lotteries, the company said. The New York Lottery also has given tentative approval, the Lottomatica statement said, assuming that state's attorney general raises no objections to the merger.

The $4.8-billion deal, under consideration now for half a year, was approved by GTECH stockholders at a special meeting last month.

Wire Reports, Lottery Post Staff

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3 comments. Last comment 10 years ago by chasingadream.
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chasingadream's avatar - Archangel 01.jpg

United States
Member #38687
May 3, 2006
315 Posts
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Posted: July 29, 2006, 2:06 am - IP Logged

please don't laugh LOLwhen I ask this......but I know in some way this is important and will affect me in one form or another.....but can someone please tell me how? What?

Oogle  waiting patiently for my jackpot

    Litebets27's avatar - power
    Maryland
    United States
    Member #10465
    January 14, 2005
    6065 Posts
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    Posted: July 29, 2006, 10:38 am - IP Logged

    Green laugh You will lose more money to an over-seas company!Green laugh

                      (not funny)

    litebets

    Feeling,  PRICELESS!!!Banana

    Come on Jackpot!!!

      chasingadream's avatar - Archangel 01.jpg

      United States
      Member #38687
      May 3, 2006
      315 Posts
      Offline
      Posted: July 30, 2006, 2:02 am - IP Logged

      thanks.....makes sense now

      Oogle  waiting patiently for my jackpot