They've been waffling over a possible takeover deal for six months now. Talks were proceeding. Then talks were stalled...
They've been waffling over a possible takeover deal for six months now. Talks were proceeding. Then talks were stalled. Then, ongoing again. And now, finally, they're over. Officially.
In brief statements to the London Stock Exchange today, two of the biggest online gaming companies in the world - Ladbrokes, Plc. and 888 Holdings, Plc. - announced they've discontinued their talk of a merger.
"Further to the announcement made by 888 on Oct. 30," 888 wrote, "and by Ladbrokes on Nov. 6 concerning discussions regarding a possible transaction, the board of 888 announces that the parties have amicably agreed to discontinue talks."
The reason: the uncertain legal ramifications of 888's previous involvement in the United States gaming market.
888 withdrew from the U.S. directly after the passing of the Unlawful Internet Gambling Enforcement Act (UIGEA) in October, leading to the original takeover speculation, but an arrangement that separated Ladbrokes from all of 888's U.S. entanglements could never be reached.
888 has also since built business back up in other markets and put itself in a less vulnerable position.
The net result of the announcement this morning, however, was a drop in share price for 888, with a 5.7% hit lowering the price to $2.31 on the London Stock Exchange.
Ladbrokes shares inched up a little, increasing just over 1%.
