888: “Conversations with Ladbrokes not over”

Online casino software developer 888 has indicated that talks between them and the British betting firm Ladbrokes are still ongoing and the online casino company is hopeful to be bought by Ladbrokes after quarterly results were better than expected.

CEO of the online casino gambling business, Gigi Levy said that discussions are still ongoing and no more major obstacles that stand in the way of a contract. This contradicts stories earlier this week that spoke of the talks were stalled because no agreement could be reached on the price of the Internet gambling business. Gigi Levy said: “It’s definitely not off the table. There is still interest on both sides in doing a deal. Every big deal has complexities, but there’s nothing which is a big sticking point. There’s a variety of things to negotiate like in any deal. We’re trying to see whether we can tackle them or not.”

Ladbrokes declined to comment on the progress of the takeover talks. The 888 shares were up 4.6 percent to 45.75 pence, which values the company at slightly less than 189.9 million euros. Investor and stockbroker Numis raised the price target of the shares at 50 pence and said that the end is in sight for 888. Numis analyst Ivor Jones said: “We believe there is a good fit between the two businesses and that both sets of shareholders should be supportive of a deal.” 888 is one of the largest developers of casino software in the world, offering casino games such as bingo, poker and slot machines. 888 also offers games to some of the world’s largest casino companies, including Harrah’s Entertainment. 888 said that operating income had increased to 52 million euros in the fourth quarter of 2011, an increase of 18 percent with the previous quarter.

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