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888.com And Ladbrokes Acquisition Deal Is Off
Amicable agreement to abandon "discussions"
The widespread speculation that Ladbrokes and 888.com were making
merger talk can now cease following an announcement from both companies
that their discussions regarding " a business transaction"
have been abandoned by mutual and amicable agreement.
Most of the UK business media reported that betting group Ladbrokes
and online gaming firm 888 were no longer in talks regarding a possible
deal.
Speculation started back in October last year when the two companies
held meetings, but it is said that the discussions were interrupted
and delayed by the US legislative development of the Unlawful Internet
Gambling Enforcement Act that seeks to disrupt online gambling financial
transactions.
The International Herald Tribune claimed that Ladbrokes was looking
at ways to cap any liability in the US which could arise from a
takeover of 888 as America continues its crackdown on internet gambling.
888.com pulled out of the USA as a consequence of the UIGEA but
had previously diversified geographically in its buisness activities
and was not as badly hit as some of the other public companies.
Since the US legislation was introduced 888 has continued to build
its business elsewhere, and was granted an online sports betting
licence in Italy in December and, in February, signed an agreement
with the owner of Rileys, the chain of 168 snooker, pool and poker
clubs, which will see 888 support the Rileys website (see earlier
InfoPowa report).
Shares in the Gibraltar-based parent 888 Holdings PLC dropped 5.7
percent Monday after the company made the announcement that the
talks were being discontinued.
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