Internet gambling shares plummet
The value of internet gambling shares plummeted today as the sector’s worst fears about legislation in the United States came true.
Top flight company PartyGaming tumbled 59% and second-tier firm 888 Holdings dived 35% after US Congress passed laws banning banks and credit card companies from processing payments to online casinos.
The slide, which halved the value of the sector, failed to derail the FTSE 100 Index, which was 16.1 points higher at 5976.9 by mid-morning.
Utility stocks surged after Anglian Water owner AWG agreed a £2.2bn (€3.2bn) takeover and then said it had received other offers.
The news sent AWG up 5%, or 83p to 1628p, while in the top flight Severn Trent rose 39p to 1375p and Scottish Power added 16.5p to 668p after its shares also benefited from a positive trading update.
British Airways also soared putting back losses at the end of last week with a gain of 5.75p to 432.75p.
Among the gaming shares, Party Poker firm PartyGaming fell 62.25p to 44.75p, 888 tumbled 51.5p to 95p and Sportingbet fell 106.75p to 77.5p, a drop of 58%.
Insurer Prudential fell more than 2% or 15p to 648.5p as investors booked profits following a rise on Friday on takeover talk. A report in the Observer at the weekend said it was examining its options for its UK operations.
Meanwhile, second flight software firm Misys dropped 17% or 38p to 188.25p after Citigroup maintained its sell rating following a trading update and the resignation of chief executive Kevin Lomax who stepped down after the company ended takeover talks.
But drinks firm Britvic bubbled 4% or 9.5p to 241.25p after it emerged private equity firm Permira had been lining up a £600m (€885m) takeover offer for Britvic, which is best known for making Robinsons and Tango.
Shares remained in positive territory, even though Permira said today it did not intend to make an offer.
