MILAN (Thomson Financial) - Lottomatica SpA said its US unit GTECH Corp has
been told by the Pennsylvania Lottery that a contract for online and
instantaneous lottery services that it hoped to win will be awarded to a rival.
In March, the Pennsylvania lottery launched an examination of an earlier
decision in January to award the contract to GTECH, subject to negotiation,
because of GTECH changes to its terminal offering.
"GTECH has been informed by the Pennsylvania lottery that the lottery
intends to award to its present supplier the contract for the online and
instantaneous lotteries," Lottomatica said.
Reports say the winner is Scientific Games.
In its statement Saturday, Lottomatica said there had been only two bidders
in the contest and the rival had originally been defeated before being given the
opportunity to re-present its offer.
GTECH will examine if the company's rights have been violated and if it will
launch any legal action, it said.
Previously, Lottomatica said Pennsylvania's second thoughts on its January
decision were due to unexpected delays in the Imagine terminal product and the
offering of the Altura terminal instead.
Saturday, Lottomatica said the five-year contract would have been worth 15
million to 18 million euro a year starting from 2009, and investments for 40
million were planned in 2008.
Lottomatica said it reiterated its earnings guidance given in early April
during its 2008-2010 business plan presentation.
nigel.tutt@thomsonreuters.com
nt/ejp
COPYRIGHT
Copyright Thomson Financial News Limited 2008. All rights reserved.
The copying, republication or redistribution of Thomson Financial News Content,
including by framing or similar means, is expressly prohibited without the prior
written consent of Thomson Financial News.
|