UPDATE: Citigroup Downgrades Bally Technologies Amid Acquisition News

Following Friday's announcement that Scientific Games (NASDAQ: SGMS) will acquire Bally Technologies (NYSE: BYI) for $83.30 per share, Citigroup analyst Michael Goltsman downgraded shares of Bally Technologies from Buy to Hold and lowered his price target from $90 to $83.30.

Goltsman noted that he does not expect a competing bid due to the high amount of unique cost synergies between Bally and Scientific Games. Specifically, he said Scientific Games expects to realize $220 million in costs and $25 million in capital expenditures.

Despite the downgrade, shares of Bally are trading up a little over one percent early in Monday's session.