Online poker group mulls options

Online betting group PartyGaming could float on the London stock market, it emerged today.

The world’s biggest web-based poker firm has appointed investment banks Dresdner Kleinwort Wasserstein (DrKW) and Investec “to undertake a review of the group’s strategic options”, a statement from PartyGaming said.

PartyGaming did not specify what options it was considering, but reports suggested it could go for a flotation that would value the group at between £3bn (€4.3bn) and £5bn (€7.2bn).

Such a move could see PartyGaming, formerly known as iGlobalMedia, enter the FTSE 100 Index of Britain’s leading companies.

The group’s PartyPoker.com gaming room, set up in 2001, has about five million users.

Other reported scenarios under discussion include merger and acquisition opportunities or raising money on the debt markets.

Chief executive Richard Segal said the online gaming industry was continuing to experience exceptional rates of growth and PartyGaming was generating significant levels of profit and operating cash flow.

“We look forward to working with the teams at DrKW and Investec in taking the group to the next stage of its development,” he said.