The decision by the four founders of Party Gaming to sell off shares of their stock in Party Gaming has added to the already shaky state of the company’s stock. The sell-off, which was for some 190 million in shares, was exacerbated by the news that two of the founders, Dikshit and Bhargarva, were also stepping down from the board. Dikshit said he was stepping down from the board to focus on product development, while Bhargava resigned as marketing director.

Founders Ruth Parasol and her husband, Russell DeLeon, both disposed of 33 million shares, which left them each 14.87 percent of the company. Anurag Dikshit sold off 57 million in shares, which left him with 28.95 percent of the company, while Vikrant Bhargava sold 67 million, leaving him with 6.96 percent. Between all of them, the four founders still own 65.7 percent of Party Gaming.

To assuage investor fears, the group said that 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. The company also reiterated that the founders must maintain a majority holding until the year 2010 in order to keep its Gibraltar base and accompanying beneficial tax status. Additionally, Party Gaming also reported that the founders must provide a year’s advance notice prior to reducing their combined holding below 50 percent.

Posted on: June 26, 2006

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