May 30, 2008 / 11:24 AM / 11 years ago

PartyGaming shares rise on talk of U.S. settlement

A computer screen displays an online gambling website, October 2, 2006. REUTERS/Toby Melville

LONDON (Reuters) - Shares in online poker and betting firm PartyGaming PRTY.L were up over 10 percent on Friday on talk it has reached a settlement with U.S. authorities over its previous U.S.-facing activities, traders said.

An agreement would eliminate the possibility of U.S. authorities taking retrospective action against the company in relation to its activities in the United States prior to legislation being passed in October 2006 which effectively outlawed the industry.

“I’m led to believe that they may have come to an agreement in the U.S. It means they would have no more outstanding issues with the authorities which would put them in the position where they could be bid for,” said one London trader.

PartyGaming declined to comment on the speculation.

At 12:10 p.m., shares in the company were 10.6 percent higher at 288.75 pence.

888 (888.L), which has held similar discussion with U.S. authorities, was 3.4 percent higher at 147.25 pence.

Reporting by Matthew Scuffham and Michael Taylor, Editing by Mark Potter

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