Leading analyst plays down possibility that compensation package has been agreed with US Government.
Monday 9th June 2008
Rumours that surfaced on Wednesday that online casino operator PartyGaming had settled its case with the US Department of Justice have been discounted by a leading financial analyst.
Richard Carter of Numis Securities stated that any agreement is still months away from being finalised with PartyGaming refusing to comment on any speculation.
PartyGaming’s stock rose by over ten percent last week on the back of rumours that it had agreed to pay one billion dollars in fines to the US Government in order to have all past violations of the law forgiven. Depite the large amount, investors had seen the proposed deal as an indicator of better times ahead and new opportuities for the Gibraltar-based online gambling provider.
However, this latest news has seen PartyGaming’s stock fall by 7.5 percent to value the firm at $2.2 billion, which could make the rumoured deal unworkable. One saving feature could be the seven billion dollars the company’s owners received after taking the enterprise public, giving them massive cash reserves.
Carter stated that credit sources and new markets will open to PartyGaming once the US dispute is settled with investors preferring to have all possible future legal actions resolved before parting with their cash.
Rumours that surfaced on Wednesday that online casino operator PartyGaming had settled its case with the US Department of Justice have been discounted by a leading financial analyst.