Party Gaming unsteady following 5 percent share sell-off by founders

Last week's sell off of a total of some 190 million shares by the 4 founders of Party Gaming (see previous InfoPowa report) continued to make for an unsteady stock this week. The situation was exacerbated by two of the founders, Dikshit and Bhargarva stepping down from the Board. Bhargava resigned as marketing director, and Dikshit said he was stepping down from the board to focus on product development.

Founders Anurag Dikshit offloaded 57 million shares, reducing his stake to 28.95 percent, while Vikrant Bhargava sold 67 million, leaving him with 6.96 percent. Ruth Parasol and her husband, Russell DeLeon, both disposed 33 million shares, leaving each with 14.87 percent of the company.

Between them, the four founders still own 65.7 percent of Party Gaming.

The group said the directors would not sell any more shares for the rest of the year without the consent of investment brokers and bankers Dresdner Kleinwort Wasserstein.

Party Gaming also moved to assuage fears of further share sales by reiterating that to keep its Gibraltar base - and beneficial tax status - the founders have to maintain a majority holding until 2010.

A year's notice is needed if the founders intend to reduce their combined holding below 50 percent, Party Gaming added.

Party Gaming operates Party Poker and Partycasino.