(Alliance News) - Playtech PLC on Wednesday said its board continues to recommend that shareholders vote in favour of the takeover offer from Aristocrat Leisure Ltd.
The FTSE-250 listed gambling software firm issued a statement in response to a Sky News article released late on Tuesday.
The article - citing "inside sources" - reported that the company is making contingency plans to break up the business, if a group of Asian-based shareholders vote to block the Aristocrat deal. The group referenced is said to hold 25% of stock in Playtech, and the vote requires 75% shareholder approval.
Sky News reported the board of Playtech and its advisors at Wells Fargo, Jefferies and Goodbody have begun making plans to auction off operations should the vote fail.
"Whilst Playtech has made significant strategic and operational progress and is in a strong position for the future, Aristocrat's proposal provides an attractive opportunity for shareholders to accelerate the delivery of Playtech's longer-term value," Playtech responded.
Shareholders will vote on the deal on Wednesday next week.
Shares in Playtech dropped 2.4% to 626.00 pence each in London on Wednesday morning, the worst FTSE 250 performer.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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Playtech (PTEC)