Sportingbet has ended plans for a US$1.4bn takeover of poker operator Empire Online.
Sportingbet announced early this month it was in early stage merger talks with Empire, the owners of Empire Poker.
But it revealed today that negotiations had ceased by mutual consent.
"Sportingbet can now confirm that, by mutual agreement, it has ceased discussions with Empire in respect of the potential offer," Sportingbet said in a statement.
Nigel Payne, chief executive of Sportingbet, said he wished Empire well in its future dealings.
"Empire is a great business and its chief executive Noam Lanir is a great marketing man who is an excellent leader," Payne said.
Paul Leyland, leisure analyst at Seymour Pierce, said Sportingbet's decision to end talks was probably the right one for the firm.
The mooted merger would have presented significant integration problems for Sportingbet, with Empire currently using software and payment processing from PartyGaming.
PartyGaming is widely expected to put in a separate bid for Empire Online, which is its largest white label partner.
And the acquisition would likely be earnings enhancing, with analysts estimating Empire's deal gives it an 80% revenue share.
Leyland said he expected PartyGaming to wait for Empire's share price to fall further before mounting a bid.
Empire Online finished trading on Tuesday at 202.5p, down 20% on the day.
source : egaming review
