Sportingbet faces possible takeover

Following media speculation about a possible buyout offer, Bwin Interactive Entertainment AG and Sportingbet Plc. have both confirmed they are talking about a deal. Bwin is seeking to buyout the other online gambling company.

Sportingbet, which owns Paradise Poker, released a statement on its Web site today saying that it has received a "very preliminary approach which may or may not lead to an offer for the entire issued share capital of Sportingbet."

Bwin also confirmed the two companies are in "very preliminary discussions" about a possible acquisition of Sportingbet.

If the deal were to go through, Bwin would be gaining more than 200,000 sports betting customers in Europe as well as other gambling customers.

The takeover talks helped boost Sportingbet's stock prices for the day as well. After the company confirmed talks, the share rose 18%. Bwin's stocks also saw an 8.5% boost.

Because the talks are in such a preliminary stage it's unclear how a possible takeover would affect Sportingbet's current agreements and client-base.

Sportingbet and Boss Media had renewed their contract last month for a further three years. The agreement also saw a transfer of all Paradise Poker customers over to Boss's IPN network.

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