Playtech's JV unaffected by William Hill injunction

LONDON, UK: Online gaming firm Playtech on Wednesday said legal action taken against it by joint venture partner William Hill would not affect the partnership.

William Hill, Britain's biggest bookmaker, on Tuesday said it had secured an interim injunction against its key software provider Playtech in a bid to protect its legal rights relating to an online joint-venture between the two groups.

British media reports said William Hill had also secured the injunction to disrupt merger talks between Playtech and rival bookmaker Ladbrokes.

Estonia-based Playtech, which is the biggest company listed on London's junior market AIM, on Wednesday said its interests in the joint venture were unaffected by the interim injunction.

"Playtech recently initiated discussions with William Hill seeking possible significant amendments to the current William Hill Online joint venture agreements," William Hill said in its statement on Tuesday. "There has also been press speculation regarding discussions between Playtech and Ladbrokes."

Execution Noble analyst Alistair Macdonald said securing the injunction was "a strategic move by William Hill to prevent competitive losses" and because of "press speculation regarding discussions between Playtech and Ladbrokes".

William Hill said its online joint venture remained strong and that it was committed to the success of the venture.

Shares in Playtech were 1.9 per cent up at 353.25 pence in early trade, while William Hill was 0.1 per cent higher at 189.05 pence.