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Last Updated: Thursday, 3 November 2005, 19:30 GMT
Partygaming in Empire bid talks
Poker chips and playing cards
Poker is increasingly popular with online gamblers
Internet gaming firm Partygaming has revealed it is in early bid talks with smaller rival Empire Online.

The UK's biggest online casino said it had made a "preliminary, non-binding approach to Empire".

Last month, Partygaming, which owns the Partypoker website, reported a 32% rise in quarterly revenue to $220m (�124m).

Empire, however, was forced to issue a profit warning last month after its users were blocked from using sites run by Partygaming.

Empire said its profits would be 10% below forecasts after Partygaming moved all its players to a new platform which blocked access from so-called skin sites.

Second approach

Any offer proposal would depend upon...a number of material pre-conditions, including due diligence and the prospects for Empire's business
Partygaming

Partygaming did not say how much it was prepared to offer for Empire.

Press reports on Wednesday suggested that Partygaming was considering making a �400m bid for Empire, although analysts questioned whether the firm would be willing to pay this much.

In September, Empire said it had received a separate �790m approach from larger online rival Sportingbet. However, talks between both sides broke down later in the month.

In a statement, Partygaming said: "Any offer proposal would depend upon, in particular, Partygaming being satisfied as to a number of material pre-conditions, including due diligence and the prospects for Empire's business."

Shares in Partygaming closed up 0.27% at 93.25 pence on the London Stock Exchange. Shares in Empire Online were down 1.73% at 113.50 pence.


SEE ALSO:
Gambling picks up at Partygaming
21 Oct 05 |  Business
Partypoker move hits Empire stock
10 Oct 05 |  Business
Partygaming joins Footsie index
07 Sep 05 |  Business
Slowdown fear knocks Partygaming
06 Sep 05 |  Business
Online betting firm in bid talks
05 Sep 05 |  Business



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