STOCKS NEWS EUROPE-Inspired Gaming down on share plan

Shares in Inspired Gaming (INGG.L) tumble 25 percent as investors desert the stock after the company proposes a share capital reorganisation, which Hoodless Brennan says offers little attraction for ordinary shareholders, and therefore keeps its "sell" rating.

"The reorganisation would give 90 percent of the new issued share capital to the preference holders, while existing ordinary shareholders will hold just 10 percent," the broker says in note.

"Why an ordinary shareholder would support this is hard to see," it adds.

Inspired Gaming, which is the subject of a bid approach, says the reorganisation is necessary as the company's existing capital structure is too complicated and contributes to the low liquidity in trading.

Hoodless Brennan says the preference shares are a barrier to the group being sold.

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