Bwin Merger Yields Surprising Results
Published March 17, 2011 by OCR Editor
Gaming giants solidify merger.
By March 31 the proposed merger between gaming giant bwin and its opposite number PartyGaming is expected to be completed. Should the Gibraltar court approve the deal, then a significant new gaming enterprise will be born.
The paperwork for this deal has already been submitted to the companies register via the Vienna Commercial Court. In step with the requirements of the companies trading policies, bwin shares will desist from being traded at the end of day on March 25. This is to ensure that all the requisite administrative requirements are complied with.
Depository Interests for bwin ShareholdersBy April 1, all existing bwin shareholders will be getting 12.23 bwin party depository interests for each of their bwin shares. These will be traded under the name BPTY.L. on the LSE. bwin has been granted anti-trust approval from the authorities in Romania. Since January 1, 2010 the bwin.party depository interests have carried a dividend entitlement.
Merger Talks Impact on the Share PricesAlthough the share price had dropped to a 52-week low of €23.65 p/share, it did recover in later trading. It wasn't only bwin that was left reeling following merger consultations - it was PartyGaming plc too. Its share price dropped to 168.50 pence in London, but also bounced back to recover a little. These movements are in contrast to the time when the details of a merger were floated between these companies.
