Shares in the Austrian internet bookmaker tumbled 30 per cent after a German newspaper said the company may have its German betting license withdrawn as early as Thursday. Sueddeutsche Zeitung cited unidentified sources from Saxony state\’s interior ministry. The Saxon interior ministry declined to comment, but scheduled a news conference for tomorrow in Dresden.
“The legal uncertainty could materially damage, even destroy, the business model of bwin, at least in Germany,” said CA IB chief analyst Alfred Reisenberger in a note sent to clients. “We strongly recommend any shareholder/investor to shy away from the stock.”
Bwin shares have dropped 88 per cent since its peak in May this year, losing over EUR 2.7 billion in market capitalization.
Elsewhere, IFX Group said it has concluded that City Index\’s 180p per share offer is the best option available for its shareholders. “The IFX directors have considered the implications for all stakeholders in IFX of the options available and have concluded that the offer represents the best course available,” IFX Chairman Adam Mills said in a statement.
Swiss broker UBS upgraded Rank Group to buy from neutral and lifted target price to 240p from 215p ahead of next month results. “We believe that Rank has been undergoing a significant restructuring since the appointment of Ian Burke as the new chief executive in March,” said UBS in a report. “This process is being implemented quietly, with Mr Burke\’s first major presentation to the City due to take place at the interim results on 1 September 2006.”
While 888 is actively seeking a sports betting operation and PartyGaming Chief Executive Mitch Garber said the Gamebookers acquisition would not be his last, industry analysts have identified privately-owned Expekt as the most attractive Europe-focused sports betting operation.
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