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Shares of Sportingbet Sag
 September 12, 2006, 5:27 pm (5 years ago)When trading resumed, online bookmaker Sportingbet started with a 40 percent loss on the London Stock Exchange yesterday. This is due to the arrest of its non executive chairman Peter Dicks last week, on charges of suspected Internet trading violations.
As per the request of the board of directors, shares in the company were suspended at 239p on Thursday morning. Mr. Dicks was being held by authorities at JFK Airport in New York. Even this morning’s news paints a grim picture of Sportingbet as it resumed trading with more than £400 million being wiped from the formerly £1 billion-plus company as shares fall 95.5p to 143.5p.
On condition that he surrenders his passport and remains within the five boroughs of New York, Sportingbet confirmed this morning that Mr. Dicks had been granted bail of $50,000 at a court hearing on Friday. To face charges of Internet trading violations, Mr. Dicks and his representatives who are fighting extradition to Louisiana, through another hearing. Sportingbet has recaped that it has received no correspondence from the State of Louisiana “regarding this or any other matter.”
News of the arrest sent a tremor across the online gaming world and wiped more than £1 billion of the value of listed companies in the sector. It has also potentially made vulnerable the company’s £60 million bid for smaller rival World Gaming, which generates 98 percent of its revenue from the US.
A shine is waiting for sure after the mist. These people know how to convert a tumbling block into a stepping stone.
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