|Cassava, the company behind 888.com, is to makes employees in their Gibraltar headquarters redundant. The decision follows the UIGEA (Unlawful Internet Gambling Enforcement Act) and the news of talks with UK bookmaker Ladbrokes about a proposed takeover.|
Employees have started to receive redundancy letters, with some sources suggesting that up to 150 may be dismissed.
The possible deal with Ladbrokes has had a significant effect on 888's shares, which were up yesterday 8.6 percent at 120p, valuing the group at more than £400 million($763 million).
A spokesman for Ladbrokes said that his company was in the early stages of reviewing a possible transaction involving 888 although industry analysts believe any bid would have to be above 470 million pounds to be acceptable to 888.