The negative reaction visible in Playtech 's (PTEC) shares smacls of a company that has gone all in and lost. The fact it has called off its planned £460m takeover of contracts for difference (CFD) provider Plus500 (PLUS) has rightly concerned investors, especially as Playtech showed its confidence by raising the cash in anticipation of the deal.
The group's spokespeople claim if a longer deadline than December 31 had been available, then the issues the Financial Conduct Authority had may well have been overcome. Plus500 recently had to tighten up its anti-money laundering structures. Now Playtech seems less optimistic on its pending transaction with forex broker Ava Trade, a deal which has seen opposition from the Central Bank of Ireland.
It is understandable that the shares have had a strong negative reaction on the basis that such advanced plans have been scuppered.
