A report in Britain's Sunday Telegraph sparked rumors that British gaming company Ladbrokes' takeover of Gibraltar-based operator 888 is in serious trouble.
Quoting unnamed sources close to the deal, the paper said the £470 million ($903.5 million) deal had been all but called off due to the presence of U.S. litigation over 888's trading in America prior to the enactment of the U.S. Unlawful Internet Gambling Enforcement Act, signed in October 2006.
The paper also pointed to former 888 CEO John Anderson's recent invitation to speak with French gaming authorities as a possible reason for the stalled talks.
Ladbrokes' chief executive, Christopher Bell, maintains that the talks, which began last November, are ongoing. And Ciaran O'Brien, Ladbrokes head of PR, denied rumors that the talks had been called off.
"Talks continue as before," O'Brien said. "The deal is inherently complex. Should there be any developments we will update the market accordingly."
Nonetheless, the speculation did little to help either company today on the London Stock Exchange. Ladbrokes fell 10.50p (2.58 percent) to 396.50, while 888 dropped 5.25p (5.16 percent) to close at 96.50.