PartyGaming Continues Push Towards IPO

PartyGaming, the internet’s largest poker company, appears ready to retain the services of four European banks to assist its main adviser, Dresdner Kleinwort Wasserstein, in preparing its initial public offering. Analysts estimate the IPO could value the company at as much as $10 billion.

While banking sources have said that PartyGaming has had problems getting big-name banks to sell the issue, the company apparently has extended invitations to four to co-lead an offer: Commerzbank (Germany), HVB (Germany), BBVA (Spain), and Mediobanca (Italy).

Because of gambling restrictions in the United States, PartyGaming is expected to market the IPO aggressively in Europe. These same restrictions have also made US banks wary of getting involved. Said one insider familiar with PartyGaming, “None of the US houses want to do this because of the problems with this business in the US.”

Major European banks with large presences in the US, such as Deutsche Bank and UBS, have also chosen to keep their distance.

Dresdner had been advising PartyGaming jointly with Investec, but PartyGaming chose not to continue the relationship with Investec once their initial contract ended.

Related stories: PartyGaming Zeroing in on IPO Date

Originally published May 20, 2005