PartyGaming dismissed outright the chances of Empire Online’s threatened legal action over the former’s recent decision regarding its ‘skins’ meeting with any success. John Shepherd, director of corporate communications at PartyGaming, said Empire was “clutching at straws” after it had rejected a revised offer for the business which PartyGaming said was “equivalent to around 60p per Empire share.”
In a statement to the London Stock Exchange on 21 November, Empire said it had terminated discussions regarding a takeover approach from PartyGaming after it had received a revised offer that was “significantly different both in terms of the price and structure and at a level that cannot be recommended.”
It is thought the original offer announced on 3 November was substantially higher than the revised offer.
The statement continued that Empire had “explored whether legal action might be taken by Empire Online in relation to damage caused to it by the conduct of companies within the PartyGaming group in separating the poker system used by PartyGaming players from that of its ‘skins’.”
PartyGaming set up an operating poker platform aimed purely at players PartyPoker.com on 10 October, in effect ring-fencing its existing player base from the platform it previously shared with its ‘skins’ EmpirePoker, Intertops, Coral Eurobet and Multipoker.
Since that announcment, PartyGaming has acquired MultiPoker, reorganised its relationship with Intertops, and Coral Eurobet has opted to leave the PartyGaming network.
Analysts were also sceptical of Empire’s proposed legal action.
“I am not sure there is anything in the way of a legal action that they can do,” said Paul Leyland, an analyst at Seymour Pierce. “I think this is Noam [Lanir, chief executive of Empire] throwing his toys out of the pram.”
Leyland added the task now for Empire would be to justify its projections for next year. “I am sceptical, I must say,” he said.
However, a more optimistic take on events came from Richard Carter, an analyst at Empire’s house broker Numis, who suggested the news meant “certainty has been restored.”
He added should Empire come up with the numbers that are presently forecast, its share price should be “back up to 150p in the next six to 12 months. “It is a case of rolling their sleeves up,” he added.
source : egr magazine
