Thursday November 27,2014 : INVESTORS HOLD FIRE ON BWIN.PARTY
Share price shows little advance despite talk about talks.
The possible sale of the Bwin.Party Digital Entertainment online gambling group has not tempted investors this week, with the share price easing slightly as the market awaited developments.
InfoPowa readers will recall that the company confirmed earlier this month that it was in talks with a number of interested parties over a "variety of potential business combinations, which could result in an offer being made for the company."
Since then the firm has been silent on the issue, although there has been widespread speculation that Amaya Gaming or Playtech are the unidentified suitors.
The UK financial publication This Is Money reported Wednesday that there is street talk of a cash bid in the region of 150p a share by Amaya, which in June forked out $4.9 billion for PokerStars and Full Tilt. That deal established it as the world’s biggest online gambling group, and Bwin would be a perfect bolt-on, the publication observed.
Bwin has faced pressure from 5 percent US activist investor Jason Ader’s SpringOwl vehicle to shake up its board, improve its growth strategy and reduce infrastructure costs