Changes at Autotote Announced
Autotote Corporation (TTE) has changed its corporate name and stock symbol. Effective April 27, the company is now known as Scientific Games Corporation, with its shares trading on the American Stock Exchange (AMEX) under the symbol "SGM."
"Our change of name from Autotote Corporation to Scientific Games Corporation reflects our feeling that the latter more accurately and completely describes the breadth of products and services we offer to the
global gaming industry. At the same time we will continue to operate in the worldwide pari-mutuel industry under the Autotote name," said Lorne Weil, company chairman and CEO.
Stanley Seeks Cash for Coral Takeover
Following the dismal financial figures released in January by Coral Eurobet, rumors have been swirling that the bookmaker, considered the U.K.'s third largest bookmaker, is headed for the sales block. The Times reported that Stanley Leisure (SLY) is trying to come up with funds to pay for a £500 million takeover bid. Morgan Grenfell Private Equity acquired Coral in December 1998 for £390 million. Officials from both companies remained mum, although a source close to Stanley said, "They are not on the brink of doing anything and the chances are no more than 50/50. It's under discussion, but they haven't made an offer."
"If there is a deal it will be some way off," the source added. "Funding is the issue."
A bid from Stanley is hampered by the company's lowered stock performance, which is well below historic levels, even though shares have jumped from 155 pence to 245 pence in recent weeks. Thanks to the recent foot-and-mouth outbreak investors have been leery that Stanley and competing British betting firms will report losses. Whether Stanley would keep Coral's Internet arm Eurobet is unclear at this time. The cost of launching the online betting site has been blamed for some of Coral's current financial difficulties. Stanley already has its own e-betting site licensed in Malta, so there's little impetus to keep Eurobet.
Moody's Changes Ratings Outlook for Hilton
Following the announcement that Hilton Group plc (HG.L) was acquiring the Scandic Hotels chain for £612 million plus £54 million of assumed debt, Moody 's Investors Services changed its rating outlook for the company from stable to negative. Moody's gave high marks to the Scandic acquisition, but added that the "shift in outlook from stable to negative recognizes that Hilton Group's lease adjusted debt protection measurements are currently weak for the Baal rating category, and reflects Moody's view that Hilton has paid a relatively full price for Scandic at a time when economic activity is expected to grow."
Stock Buy Back for Sungold
Officials from Sungold Entertainment Corp. (SGGNF) are anticipating revenue growth following a late May wagering launch of its HorsepowerTM 2 software. As a result, the company has approved in principle to a common stock buy-back program. In addition, Scotia Wilson International Ltd has been retained to manage the company's reciprocal partner online promotion for the HorsepowerTM 2 product.
Financial Advisor Retained by dot com
The investment banking firm of Griffiths McBurney & Partners has been retained to assist in the evaluation of corporate opportunities and other strategic initiatives for dot com Entertainment Group (DCEG).
Multimedia Games Pre-Announces Second Quarter Earnings
Multimedia Games Inc. (MGAM) officials expect the company's earnings will be greater than expected for the quarter ended March 31, 2001. The company expects to report that basic earnings per share (EPS) increased 100 percent over the same period last year.
Happy Spring for TVG
With handle up 93.7 percent over a year ago, the first quarter of the year was positive for Television Games Network. TVG offered 7,920 races as opposed to 4,758 last year in the same period, and handled $6.1 million as opposed to $3.1 million in 2000. Coming on the heels of a $5.7 million fourth quarter last year, the results are heartening, and TVG now is available to 6.5 million homes by satellite and cable. With new outlets and summer ahead, TVG could meet the $250,000 target that NTRA expects to receive from TVG this year.
Reports Released