In separate notes to the London Stock Exchange this morning, Ladbrokes and 888 announced that merger talks have been called off, ending nearly six months of M&A-related speculation.
Talks between the two London-listed companies began in October 2006 when Ladbrokes announced--after a deluge of media inquiries--that it was in "early stages of reviewing a possible transaction involving 888."
In December, the £490 million ($958.9 million) deal appeared to be reaching a conclusion, but then stalled. Rumors followed in March that the deal had been all but called off due to the presence of U.S. litigation regarding 888's trading in America prior to the enactment of the U.S. Unlawful Internet Gambling Enforcement Act in October 2006.
Ladbrokes said that the parties have amicably agreed to discontinue talks, but was unable to comment on the announcement.
On news of the talks' dissolution, 888 was down 5.50p to 117.