Shares of 888 Holdings, parent company of online casino Casino-on-Net and poker website Pacific Poker, reached an all-time high amid talks that it could become a takeover target for Ladbrokes, which has also been linked to spread betting firm IG Group.
888 Holdings, which is run by Chief Executive John Anderson, once a Ladbrokes employee, generates around half of its revenues from the US.
Industry analysts noted that 888 is trading on a prospective price-earnings ratio of 14 and appears to be one of the cheapest stocks in the sector. The company, which floated at 175p in September, at one point on Thursday hit 220p before closing the week at 208p, valuing the online gaming operator at just over £700m.
IG Group is expected to announce further joint ventures in Asia and would represent an interesting move for Ladbrokes or other traditional bookmakers. The company, which floated at 120p in May, closed the week at a record 183.75p, valuing the spread betting firm at around £590m.
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