Party pops

7 Jun 2006 By John Foley Follow @johnsfoley

The online poker giant may be cheap on fundamentals. But the reaction to its 8% share placing shows investors still have misgivings. To rebuild trust, Partygaming’s founders have cut the sale to 5% and locked in their remaining stakes for the rest of the year.

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Partygaming's founders have scaled back a planned stake sale from 350m shares to 200m following weak demand, according to a source close to the company. The shares, representing 5% of the company, were sold at 116p – the same price at which the online gaming group was floated in June 2005.

Following the sale, Partygaming's controlling shareholders have agreed to extend their existing lockup from June 30 to December 31. As of September 5, however, they will be able to sell shares if advisor Dresdner Kleinwort Wasserstein gives permission.

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