Shares in bwin.party (Pwin) saw an unexpected spike in price earlier today after rumors circulated that the public gambling industry behemoth could be taken over. Shares in the company were as high as 112.50p earlier today representing a rise of 6.43% as suitors on both sides of the Atlantic were mooted as potential buyers.
Idle chit-chat points towards Steve Wynn’s casino business, Wynn Resorts, making a bid for the firm that would value it as high as 170p a share. According to the Evening Standard, it was 10p higher than it was on Friday and would be quite the price to pay amongst the uncertainty in the US market. Another trader that said acquisitions in the online gambling industry are currently unlikely until assurances are issued over the US market also pointed this out.
On the other side of the Atlantic, it has been one of the old stagers of the gambling industry that has been mentioned. William Hill is rumored to be looking at the firm and it would be quite the surprise were they to decide to take the plunge.
The firm’s shares hit a new low last week and they could no longer count themselves in the club that has shares in three figures. Later in the day, they were back above the threshold again but it will have worried analysts looking at the firm.
Since the firm became Pwin back in April, the firm’s share price has plummeted by a total of 45%. They can put that down to any number of different factors with the uppermost of these arguably the decision by German lander to change the country’s online gaming industry laws.
Analysts have reiterated their “buy” recommendation on Pwin shares with Simon Whittington giving a price target of 185p for the shares. That may be further strengthened if they stink the place out with their first half results at the end of the month.