Sportingbet - Empire Online Talks Off

Published: Thursday, September 22, 2005 Online-Casinos.com

SPORTINGBET - EMPIRE ONLINE TALKS OFF

Takeover discussions halted "by mutual agreement"

Sportingbet Plc, a U.K. internet betting company, said this week that it has ended negotiations to buy Empire Online Ltd. Shares of Empire Online fell as much as 16 percent.

Discussions were halted by ``mutual agreement,'' London-based Sportingbet said today in a statement. The companies disclosed Sept. 5 they were in talks, three days after Empire said it had received an approach worth GBP 790.5 million ($1.4 billion) See previous InfoPowa reports.

``Talks were only ever at an early stage and were not able to move to completion,'' Empire spokesman Ged Brumby said. Chief Executive Officer Noam Lanir was ``very impressed'' with Sportingbet management, led by CEO Nigel Payne, ``and now better understands the leadership positions they've achieved,'' he said. No due-diligence information was exchanged, according to Brumby.

Sportingbet spokesman George Hudson declined to comment on the reason why talks between the companies had broken down.

Shares of Empire Online dropped 40.5 pence to 213.5 pence, the day's lowest price, at 1:39 p.m. in London. The drop cut the company's market value to 625 million pounds ($1.1 billion). Sportingbet stock fell 4 pence, or 1.2 percent, to 339.5 pence.

Empire Online, which helps gaming Web sites such as EmpirePoker.com gain customers, said Sept. 2 it had received an approach which involved the suitor combining its business with Empire for 270 pence a share in cash and stock. Sportingbet identified itself as the suitor three days later.

PartyGaming, the world's biggest Internet gambling company, also may make an offer for Empire Online as it is the company's biggest Web site marketing customer, the British media has previously speculated.