by Renee Israel
After months of speculation and hopes that an acquisition agreement would finally be signed, Ladbrokes and 888 Holdings announced on Friday that they had discontinued merger discussions and they were no longer in negotiations.
Both companies released statements to the London Stock Exchange on Friday.
888 Holdings' stated: "Further to the announcement made by 888 on 20 December 2010 concerning discussions with Ladbrokes Plc regarding a possible transaction, the Board of 888 announces that the parties have agreed to discontinue talks."
Ladbrokes' statement was similarly worded.
Interestingly, shares in Ladbrokes gained 7% after the statement was released, while the already struggling 888 saw its share prices plummet to their lowest level in four months - by 16%.
In December, Ladbrokes offered 888 Holdings the price of 70 p a share, an offer which was turned down by 888 shareholders.
For a time, there were hopes that Ladbrokes would pay up to 80 p but nothing came of this.
"The fact that they indicated they might go to 80 p got everyone excited," the Telegraph quoted an insider as saying. "But they didn't come up with it."
Ladbrokes boss, Richard Glynn seemed unperturbed by the failure of the talks. "We expect the economic climate in the UK to remain challenging in 2011, with consumer confidence and disposable incomes continuing to suffer. Notwithstanding this, at this early stage in the year, the business is performing in line with the Board's expectations."
