Ladbrokes Plc. confirms talks to buy 888 Holdings Plc.
by Sarah Polson
Ladbrokes Plc. issued a brief statement today confirming
recent speculation that the company is in talks to purchase 888 Holdings
Plc. A deal between the two companies could be potentially worth £470
million.
Media sources were reporting this weekend that representatives
of Ladbrokes Plc., which owns Ladbrokes Poker, had flown to Israel
to discuss a takeover deal with 888 Holdings Plc. founders and controlling
shareholders Avi and Aharon Shaked.
Ladbrokes said in a release today that "no decision
has been made as to whether any proposal will be made to 888."
888 Holdings Plc. owns and operates various online gambling sites
including Pacific Poker.
The acquisition news comes on the heels of reports that
PartyGaming Plc., owner of PartyPoker.com, was in talks with 888 Holdings
Plc. over a possible merger. PartyGaming Plc. is now thought to be
considering the possible acquisition of Bwin, an Austrian sports betting
company.
The possible mergers are a consequence of companies
making major changes after the passage of the Unlawful Internet Gambling
Enforcement Act (UIGEA) in the United States, which takes another
step in banning online gambling in the nation. PartyGaming is looking
to strengthen its position in the industry again with a merger, while
companies that remained strong such as Ladbrokes and Bodog.com are
expanding by acquiring other companies.