Ladbrokes, 888 deal may be in trouble

The Ladbrokes, Plc., and 888 Holdings, Plc. deal may be in jeopardy according to the U.K. Sunday Telegraph. The paper's "sources close to the deal" are indicating that legal issues in the United States and France may have spooked the Ladbrokes executives.

The speculation is that Ladbrokes is worried about possible litigation in the United States from 888 Holding's previous trading in the nation.

While 888 Holdings, which runs Pacific Poker, no longer does business with the United States, the Department of Justice has been leading an investigation into other gambling companies' dealings in the nation, past and present.

Those concerns were compounded after John Anderson, 888 Holdings non-executive director, was is one of several online gambling executives asked to answer questions by the French authorities.

"We've had the U.S. situation and now Ladbrokes is concerned that the French situation might lead to trouble," the Sunday Telegraph quotes an executive close to the deal as saying.

Spokesmen for both companies maintain that the deal has not been scrapped and talks are still ongoing, and a spokesman from Ladbrokes told the Telegraph that if the deal had ended, the company would have immediately sent out a press release.

Talks to work out the deal have been ongoing since November. If the deal goes through, Ladbrokes would be taking over 888 in a £470 million deal.

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