888 and Ladbrokes confirm that they are talking about a possible take over

Only a few months ago on our casino news pages we confirmed the rumours that Bwin and Partygaming were in discussions about a tie up between the companies and now it is the turn of Ladbrokes and 888. In this case it will be Ladbrokes who are looking to buy 888 for around 70 pence per share which would value the company at somewhere near £240 million which would be considerable cheaper than when Ladbrokes tried the same thing some four years ago. This time last year 888 was involved in rumours that Bwin was looking to do a deal; that rumour was strongly denied by both companies. Both Ladbrokes and 888 have issued statements in the casino news confirming that discussions are at a very preliminary stage with Ladbrokes adding the cautious note “There can be no certainty that these discussions will ultimately lead to an offer for 888 being made, nor as to the terms of any such offer”. Part of the discussions will almost certainly be how much to set aside for possible fines by the Department of Justice in the USA. When America outlawed internet gambling several online casino companies got caught out but some such as Partygaming came to an agreement with the authorities whereby they paid a single sum to avoid any further prosecution which in Partygaming’s case was just over $100 million; 888 has no such agreement. Both Richard Glynn the Chief Executive of Ladbrokes and Gigi Levy the Chief Executive of 888 seem keen on a deal so there is a good chance it will happen; we shall keep our eyes on developments and report in our casino news section..