Poker and sports betting website bwin.party is in early talks with at least two suitors that could result in a bid for the firm.
The move follows weeks of speculation that the owner of the Party Poker website was either to be acquired or broken up, as well as pressure from US activist investor Jason Ader’s Spring Owl vehicle to shake up its board. The news caused the gambling group’s shares to jump by almost 11%.
In a statement the company said: “The board of bwin.party confirms that it has entered into preliminary discussions with a number of interested parties regarding a variety of potential business combinations with a view to creating additional value for bwin.party shareholders. Such discussions may or may not result in an offer being made for the company.”
The Financial Times’ Alphaville blog said one of the suitors was Toronto-listed Amaya Gaming Group, the owner of the industry giants PokerStars and Full Tilt Poker. Market speculation also suggested that another interested party was the gambling software group Playtech, rumours that were fuelled by the company also unveiling a €297m bond placement on Wednesday.
Playtech said the fundraising was “intended to be used for pursuing acquisitive and organic opportunities”.
