by Renee Israel
Both Bwin and 888 Holdings have denied outright the rumours that they
are in negotiations for a takeover deal.
It was reported by a number of sources over the past week that bwin is in the
process of raising cash in order to acquire 888 Holdings.
The reports appeared in the United Kingdom and a number of German speaking
media outlets that an acquisition deal is imminent, however, as stated, both
groups denied the reports.
"We have known bwin for a long time but there is no truth in these rumours,"
said Gigi Levy, Chief Executive for 888 Holdings.
The Co-chief executive of bwin, Norbert Teufelberger said: "We have contacts
with everybody in the industry and common goals in that we want to operate in
regulated market. So yes, we talk to many operators and consolidation is always
an option, but in this instance there has been no call to raise funds from
existing shareholders with a view to acquire 888."
Bwin has recently acquired the Italian poker site Gioco Digital and
speculation was that the group was continuing on its policy of takeovers.
This is not the first time that 888 has been the target of takeover bid. In
2006, 888 and Ladbrokes were on the verge of signing a lucrative acquisition
deal, which fell through after the United Kingdom introduced new tax laws which
would have made the deal unprofitable for both sides.
In terms of performance, bwin enjoyed good third quarter earnings and showed
a rise in overall profits of up to 75%.
If and when 888 Holdings decide to sell out, bwin will certainly be in a good
position to make the purchase.
888 is 50% owned by shareholders, while Israeli brothers, Aaron and Avi
Shaked own the other 50% through family trusts.
Analysts believe that 888 is in prime saleable position, given that revenues
have dropped slightly. Nevertheless, the 888 subsidiary Dragonfish has created a
good springboard for itself into the US market through a deal with Harrah's
Interactive, creating good opportunities for any group that manages to takeover
this company.
