By Steve Goldstein
Gaming software company Playtech shares slumped 20% on Friday as a consortium led by former Formula One chief Eddie Jordan withdrew from bidding.
Jordan said in a statement that the JKO consortium withdrew and that it’s still looking for opportunities in the gaming sector. A group of Asian investors who recently bought Playtech were reported by the Financial Times to have scared off the Jordan-led consortium .
Aristocrat Leisure, /zigman2/quotes/202581837/delayed AU:ALL +4.78% an Australian slot machine maker, has agreed to buy Playtech for 680 pence a share, or £2.1 billion. Though Playtech is recommending the offer, the company said “a number of material investors have not to date engaged meaningfully about their views on the Aristrocrat offer.”
Playtech /zigman2/quotes/208133246/delayed UK:PTEC -4.24% shares dropped 20% to 586 pence.
The FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -1.07% dropped 1.1% to 7504 in midday trade, as the defensive characteristics of the U.K. index were not enough to offset the pessimism in global markets.
Scottish Mortgage Investment Trust /zigman2/quotes/204858474/delayed UK:SMT -0.51% , an investor in several tech plays, slumped over 4%, as Pershing Square Holdings /zigman2/quotes/205672702/delayed UK:PSH -0.58% lost 3%. Mining groups including BHP /zigman2/quotes/206213719/delayed UK:BHP -1.60% and Fresnillo /zigman2/quotes/201300065/delayed UK:FRES -3.96% also slumped.