|Empire Online said talks over a takeover by larger rival PartyGaming had broken down and it was planning legal action against its would-be owner as reported in the Times.|
Empire's, Head of Mergers and Acquisitions, Andrew Burnett said: 'We're not taking a decision to litigate lightly, but having taken that decision on good legal advice, then we will pursue it very vigorously.”
PartyGaming, Communications Director, John Shepherd said: “They're clutching at straws.”
Early media reports said PartyGaming's initial approach had valued Empire's shares at 135-140 pence, valuing the company at around 400 million pounds. An earlier approach by Sportingbet had valued Empire at 790 million pounds or about 269p per share.
But PartyGaming said on Monday it had proposed paying the equivalent of just 60p per share for the assets and business of Empire.