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UPDATE 1-Italy court rejects scratchcard suspension -source

Published 10/14/2009, 10:17 AM
Updated 10/14/2009, 10:21 AM
GTCH
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* Lazio court rejects demand for tender suspension -source

* Lottomatica seen confirmed sole bidder Thursday

* Lottomatica shares up 1.72 percent (Adds further details, shares)

ROME, Oct 14 (Reuters) - An Italian court has rejected a demand to suspend the government's lottery scratchcard concession, a court source said, easing the way for Lottomatica, expected to be the only bidder, to win a new concession in the 9 billion euro ($13.41 billion) a year game.

The Lazio regional administrative court decided on Wednesday not to grant a suspension of the tender, which was sought by Italy's private equity-owned Sisal SpA over the tough terms for bids, pending a full hearing on October 28, a court source said.

"The formulation of the tender does not inhibit the participation of (Sisal) in the tender," the judge's ruling said, according to the source.

Italy's gaming regulator AAMS is due to open bidders' envelopes on Thursday with analysts saying that only Lottomatica has filed a bid after Sisal, Italy's Snai SpA and Greece's Intralot dropped out.

The other potential bidders for up to four concessions said the tender terms were too onerous, including winners paying an 800 million euro fee up front and 10,000 sales outlets each.

Analysts and Moody's ratings agency have said being the single winner for the tender could put pressure on Lottomatica's finances. The company has not commented on how it would fund being the sole concessionaire.

Lottomatica holds the current single concession for scratchcards which runs to the end of May 2010. At 1341 GMT Lottomatica shares were up 1.72 percent at 16.52 euros.

Sisal has also complained to Italy's antitrust authority over the tender, though a newspaper report said the authority will only issue an opinion in the next few days and not launch a formal probe into the tender.

"I can confirm that we have received this petition," an antitrust authority spokeswoman said of Sisal's request, adding it was too soon to say what action the authority would take.

Sisal was not immediately available to comment.

A spokesman for gaming regulator AAMS said the opening of the bid envelopes would go ahead as planned on Thursday to see if the offers were valid and met the tender conditions. (Writing by Nigel Tutt; editing by Karen Foster and Rupert Winchester)

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