Playtech and Plus500 shares both plummet after merger called off


Following an announcement from this morning about the termination of the proposed acquisition of Plus500 Ltd (LON:PLUS) by Playtech PLC (LON:PTEC) due to regulatory issues, shares in both companies opened way below Friday close levels.

At London market open today, one share in Plus500 traded per 280p, much lower than the 400p per share that Playtech used to offer before calling off the deal. At the moment of publication of this article one share in Plus500 trades at 354p, slightly recovering from this morning’s lows. A reason for the halt of the slide could be the fast reaction of the company and the publication of its future plans, including a declaration of interim dividend and share buyback. It is too early to predict how the market will behave for the rest of the day, however.

plus_inside

Chart source: Google Finance.

The situation with Playtech’s share price is gloomier with the slide continuing after market open. At the moment of publication of this article one share in the company trades at 751p.

ptec_inside

Chart source: Google Finance.

One reason for the steeper slide at Playtech could be the pessimistic prospects for the deal with AvaTrade, which the company voiced today.

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Playtech and Plus500 shares both plummet after merger called off

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