PartyGaming Plc. stock made a slight rebound today closing at 114.25p on the London Stock Exchange, up 4.25 points from yesterday after a downward slide that started in mid-May. The stock's struggle was worsened by recent changes in the company's board of directors as well as four company founders selling off 5% of their holdings in early June.
PartyGaming Plc. stock was well over 170p per share during the latter part of July 2005, with stocks dropping as low as 69.44p in October 2005. Since then the stock rebounded and reached 155p on May 1 before starting to slide again.
The shares took a large 8.5p drop May 18 after PartyGaming Plc. announced that two of its founding members Anurag Dikshit and Vikrant Bhargava were resigning from the company's board of directors.
Dikshit stepped down to take on the position of Head of Research and Special Projects within the company, while Bhargava will serve on the board until the end of the year then pursue other interests. Bhargava plans to be available to continue advising the company after he leaves.
The stock took another hit when Bhargava, Dikshit and two other founding members, Ruth Parasol and her husband Russ DeLeon sold more of their shares in the company last week.
Originally, they had hoped to sell 350 million shares between them, 8% of the company's stock, at 119p to 120p per share. The stock ended up selling only 200 million shares at 116p per share, which is the same price it floated at one year ago.
The founders have agreed not to sell any more shares until after Sept. 5, 2006, when PartyGaming announces its half-year results. They're currently locked into their holdings until the end of December, so they would need approval from Dresdner Kleinwort Wasserstein, which represents the stock, if they want to sell any more between Sept. 5 and the end of the year.