Industry News
Sportingbet in Takeover Talks with BWIN Interactive
Internet gambling site operator BWIN Interactive Entertainment AG said this week it has made a “preliminary” takeover bid for famous rival Sportingbet PLC.
London-based Sportingbet had said earlier this week that it had received a bid, generating an approximately 15 percent gain in its share price. But, in its public pronouncements, it did not name the prospective, Vienna, Austria-based bidder or clarify additional details.
In a statement e-mailed to Onlinecasinocrawler.com, BWIN said that it is involved in “preliminary discussions with Sportingbet for the acquisition of the entire issued share capital of Sportingbet which may or may not lead to an offer.”
Sportingbet last month posted a loss in the second quarter, but, interestingly also announced a 54 percent increase in operating profit, powered by its European business as it began to reorganize the business. The company was also positive about prospects for the third-quarter, which “has started well, building on the developments that have been put in place during the second quarter.”
A stock market analyst Paul Leyland, who is with the firm Arbuthnot, was cautious about a prospective deal, as he believes that the “regulatory aspects of the due diligence process are complicated and an acquirer must have a significant risk appetite.”
Rising Share Prices
Sportingbet shares rose approximately 15 percent to close at 59 pence -- or $1.13 -- in London trading.There have been many merger moves in the gambling sector since the U.S. Congress surprised the industry last year when it added a provision to a bill aimed at improving port security to make it illegal for banks and credit card companies to settle payments to online gambling sites; and President Bush signed the bill into law last fall.
The world's biggest bookmaker, Ladbrokes PLC said shortly after the American decision that it was in talks with online gambling group 888 Holdings PLC. Chairman Ian Robinson of Ladbrokes said last month that “discussions continue and are complex because of the current conditions in the U.S. We will update the market as and when appropriate.”
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