BOSS MEDIA TAKEOVER FAILS

9 November 2007

Swedish excitement as online gambling software developer rejects offer


The Swedish business media headlines lit up Wednesday as news came in that the shares of Boss Media and rival Swedish company Net Entertainment had been suspended temporarily from trading following a takeover offer on the former.

Speculation that Net Entertainment had made a run at acquiring its rival were rife as a result of the suspension, which was ordered by the Finansinspektionen. However, Net Entertainment CEO Johan Ohman would not comment on the occurrence.

Boss Media CEO Michael Hallen later issued a statement as follows:

"As a consequence of today's trading halt in the Boss Media share, effected on an initiative from Finansinspektionen, the company wish to announce the following:

"One of the company's larger shareholders was, during the course of Tuesday afternoon, approached by an interested party announcing its interest to acquire all shares in Boss Media, subject to the larger shareholder's acceptance. During the course of Wednesday afternoon, the larger shareholder declined the offer and has subsequently informed the board and Boss Media management."

Word of the offer perhaps leaked, as shares in Net Entertainment jumped almost 6 percent before trading was suspended just after that of Boss Media.

Further statements on the incident are expected later today, along with the lifting of the trading suspensions.

Update on Boss Media takeover story:

Net Entertainment has issued a statement in the wake of Tuesday's suspension of its trading, along with Boss Media's stock.

In the statement, Pontus Lindwall, Chairman Net Entertainment NE AB, says that the company has grown rapidly over the past years with strong profitability. And he hints that NetEnt could well be on the lookout for acquisitions.

"The market for online gaming is growing rapidly and consolidation of the industry is ongoing," he adds.

"In line with other companies in the industry, Net Entertainment is continuously evaluating strategic acquisitions. At this moment no concrete negotiations or discussions are ongoing.

"Net Entertainment intend to take an active part in the consolidation of the online gaming industry."

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