<table border="0" cellpadding="10" cellspacing="0" height="291" width="100%"><tbody><tr><td valign="top">[FONT=Arial, Helvetica, sans-serif] 888 in merger talks
[/FONT]</td> </tr> <tr> <td valign="top">[FONT=Arial, Helvetica, sans-serif] 888 has confirmed that it has had preliminary merger talks.
[/FONT]</td> </tr> <tr> <td height="17">[FONT=Arial, Helvetica, sans-serif] In a statement to the London Stock Exchange, the company said it had been in talks with “third parties following the suspension of its US activities”. It added there was no certianty of discussions proceeding to an offer.
The statement came after speculation at the weekend that 888 had been in discussions with PartyGaming. That was followed by further rumours this morning that Ladbrokes might also be involved in talks.
Sources closed to 888 suggested talks had not progressed any further than a “coffee and a chat”. Both 888 and PartyGaming are based in the same office building in Gibraltar. One source suggested talks were a “bit of an open secret”.
One industry commentator expressed surprise that merger talks were on the agenda so soon after the exit of many of the major players from the US market.
“I am very surprised that too such big companies would go quite so early. They are panicking a little.”
The source suggested both companies were losing liquidity on their poker platforms, over and above the losses due to leaving the US market.
“Looking at what they are doing in terms of (poker) business, and they are all continuing to fall when they should be growing. We had expected strong growth in October.”
The source also poured cold water on rumours that Ladbrokes might also be in the market to buy 888. “I would be very surprised if Ladbrokes got involved. They will want to see how the online pack is reshuffled.”
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[/FONT]</td> </tr> <tr> <td valign="top">[FONT=Arial, Helvetica, sans-serif] 888 has confirmed that it has had preliminary merger talks.
[/FONT]</td> </tr> <tr> <td height="17">[FONT=Arial, Helvetica, sans-serif] In a statement to the London Stock Exchange, the company said it had been in talks with “third parties following the suspension of its US activities”. It added there was no certianty of discussions proceeding to an offer.
The statement came after speculation at the weekend that 888 had been in discussions with PartyGaming. That was followed by further rumours this morning that Ladbrokes might also be involved in talks.
Sources closed to 888 suggested talks had not progressed any further than a “coffee and a chat”. Both 888 and PartyGaming are based in the same office building in Gibraltar. One source suggested talks were a “bit of an open secret”.
One industry commentator expressed surprise that merger talks were on the agenda so soon after the exit of many of the major players from the US market.
“I am very surprised that too such big companies would go quite so early. They are panicking a little.”
The source suggested both companies were losing liquidity on their poker platforms, over and above the losses due to leaving the US market.
“Looking at what they are doing in terms of (poker) business, and they are all continuing to fall when they should be growing. We had expected strong growth in October.”
The source also poured cold water on rumours that Ladbrokes might also be in the market to buy 888. “I would be very surprised if Ladbrokes got involved. They will want to see how the online pack is reshuffled.”
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