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Copyright 2004 Associated Newspapers Ltd.
DAILY MAIL (London)
October 19, 2004
HEADLINE: Caribbean deal rumour puts sun in
Sportingbet
BYLINE: GEOFF FOSTER
BODY:
PROFESSIONAL punters yesterday decided to have
a flutter on Sportingbet on hearing that it is in advanced negotiations
over the possible acquisition of a 'substantial' online
poker business. Undeterred by news that any deal would have
to be funded by an equity fundraising, they chased the shares
up 41/2p to 1041/2p.
Hot gossip suggests Sportingbet, currently
capitalised at about Pounds 220m, is hoping to buy a business
based in the Caribbean in a meaty deal worth north of Pounds 170m.
eGaming Review, the industry 'bible', recently
named Sportingbet the most powerful player in the online gaming
industry, ahead of Ladbroke and William Hill. If agreed, its next
acquisition should put it in a different league.
The twin-island Caribbean state of Antigua
and Barbuda has captured a sizeable chunk of the rapidly growing
online gambling market, which was worth over Pounds 3.3bn last
year. Online poker is the fastest growing area of the market and
should continue to grow since the World Trade Organisation has
ruled against restrictive US online betting laws. The Caribbean
is a place where Sportingbet should be.
Sportingbet also said yesterday that current
trading over the first few weeks of the busy sports season is
'in line with the board's expectations'.
Ignoring early weakness on Wall Street, the
Footsie closed 3.9 points better at 4,626.6. Wall Street slumped
71 points initially on continuing worries that record oil prices
will put pressure on economic growth and company's profit margins.
Weaker-than-expected third-quarter earnings from conglomerate
3M did sentiment no favours either. The closure of short positions
amid rumours of a pending upbeat circular helped medical devices
group Smith & Nephew rally 11p to 484p.
Drugs giant Astra Zeneca advanced 34p to 2137p
on buying ahead of Thursday's third-quarter figures and news of
a positive meeting with the Pharmaceutical and Medical Advices
Agency regarding Crestor, its cholesterol drug. Medical experts
evaluated the Crestor regulatory submission and there are hopes
now that the drug will be approved in Japan by the end of the
year.
Mobile phone group mmO2 buzzed 11/2p higher
to 1011/2p after Morgan Stanley moved to overweight. The US broker
believes mmO2 will tap into the current enthusiasm for buybacks
and expects a dividend of 3p to be paid in 2006. At the same time,
Morgan Stanley downgraded banking giant HBOS (111/2p easier at
7481/2p) to inline from overweight. It believes there is better
value to be had elsewhere in the sector, notably Northern Rock
(11/2p up at 7451/2p) and Royal Bank of Scotland (4p off at 1606p).
Although Linde denied any takeover interest
in the industrial gases group, BOC rose 13p to 883p.
Niche printer Wyndeham Press firmed 2p to
1311/2p on an upbeat trading statement. Numis says buy and its
target price is 175p. Wyndeham has won a number of new orders
in recent weeks including a pre-press and printing deal for Reveal,
a new magazine, worth Pounds 2m. To cope with old and new demand,
it has acquired a second all-singing, all-dancing printing press,
costing Pounds 7.5m.
Rumours of a reverse takeover helped Transvision Resources rise
5/8p to 4p.
Following completion of its Laguna Zacatecana
feasibility study in Mexico, Minco improved 1p to 16p.
Both placed on AIM by broker Corporate Synergy,
smaller companies adviser Daniel Stewart opened and closed at
81/2p, while oil and gas exploration minnow Circle Oil opened
at 181/2p, touched 25p and closed 19p.
Vtech plummeted 26p to 801/2p following a
profits warning. Marine engineer RingProp crashed 571/2p to 2821/2p
after chief executive Don Hoult stepped down.
Workplace Systems improved 11/2p to 15p after
signing two contracts, including one with Eastern Railway, to
supply it with workforce management software.
AIM-QUOTED London-based Gold Oil rose 3/8p
to 7p after signing an evaluation agreement with Peru's state
oil company, PeruPetro, for a large unexplored area in Northern
Peru. The area consists of 300,000 hectares of land, the equivalent
of 14 North Sea oil blocks.
Along with Germany's MAN Ferrostaal, it also
plans to build a Pounds 200m petrochemical plant. Dealers believe
the upside for GO could be huge.
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