Audio – Let’s Make a Deal?
Shufflemaster has had a rough couple of years.
After the company’s shares hit a high of $47.50 in May 2006, they have more or less steadily slipped lower and were trading on Monday afternoon at about $9.00.
The casino game maker, battling a slumping share price, said it would entertain a buyout offer at the right price, its chief operating officer said on Monday.
“I’m not sure that I would tell you that I’m committed to remaining public, remaining independent, or committed to going private or committed to being acquired,” Paul Meyer told the Reuters Travel and Leisure Summit in Los Angeles. “At the end of the day it all comes down to a number.”
Meyer said he believes the company could deserve a valuation of 25 times earnings, compared with a current ratio of around 20.
Investors took notice and the shares jumped 3 percent to $9.24.
The Travel and Leisure Summit runs through Thursday in Reuters Los Angeles offices and brings together executives from the hotel, casino and online travel industries with Reuters reporters and editors.