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News Archive
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Empire prepares to sue PartyGaming
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[2005-11-21]
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Internet gambling firm Empire Online is considering legal action against gambling giant PartyGaming, after takeover negotiations between the two companies fell through.
PartyGaming is currently in the process of taking over its former partners in the online gambling world, buying Multipoker and IntertopsPoker last week for a combined total of £10.5 million.
However, Empire Online has claimed the company's offer for it was far too low, forcing PartyGaming to revise its valuation.
The offer would have seen Empire Online valued at just ten per cent of the total share capital for the merged company.
PartyGaming's new offer has once again been turned down.
"Having received legal advice, the directors intend to institute and vigorously pursue legal proceedings as soon as possible," Empire Online said in a statement.
However, PartyGaming's communications director dismissed the threat, telling Reuters: "They're clutching at straws."
Analyst Robin Chhabra also told the news agency: "The legal action might all be posturing by Empire.
"I don't think PartyGaming have to worry. As a worst case scenario they'll settle out of court, but it won't be material for PartyGaming."
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