Ladbrokes pulls the plug on 888

Shares in the online gaming firm 888 Holdings have fallen sharply after talks about a possible takeover by the bookmakers Ladbrokes fizzled out.

Ladbrokes said last November that it had approached the Gibraltar-based firm about a possible deal.

But in a statement, Ladbrokes now says the two parties have “amicably agreed to discontinue talks”.

888 has been in talks with various parties since the US enacted a law effectively banning online gaming.

Rising revenue

It has sought to diversify its interests, focusing on Europe instead.

Like other similar operators, 888 had been looking to the US for much of its long-term growth and October’s ban led many experts to question its future.

But despite closing its US operations, the firm’s gaming revenues rose 7% last year.

In morning trading, 888 shares were down 5.7% at 115.5 pence while Ladbrokes shares edged up 0.8% to 406.75p.

source: bbc.co.uk