Online casino 888 IPO to be cut by 20 pct - report
LONDON (Reuters) - Internet gambling company Cassava Enterprises is to cut the value of the stock exchange float for its online casino 888 by at least 20 percent, the Daily Mail newspaper reported on Thursday.
The London flotation will be valued at between 550 million pounds and 650 million pounds, the newspaper reported, citing an unnamed source close to the flotation.
The report said the company had been hoping for 750 million pounds, while its brokers wanted up to 875 million
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pounds.
The valuation was hit by internet poker group PartyGaming's warning last week of slow growth in the sector, the Daily Mail reported. It said banks will announce the valuation range later on Thursday.
No one at Cassava could be reached for comment. A spokeswoman said on Sunday that the company had no plans to cut the valuation or withdraw the float.
The company is over 90 percent controlled by two Israeli families and run by Gibraltar-based Cassava, which also operates fellow online casinos Pacific Poker and Reef Club Casino.
Investment bank HSBC has been appointed as sole bookrunner, global co-ordinator and sponsor for the 888 float while Bridgewell, Panmure and Numis are co-lead managers.
