Market Briefs

Crypto Possible M&A Target of Party, 888, Analysts Say

For a second straight quarter, CryptoLogic Ltd. has forecast less than rosy financials. While the warning had mixed impact in the markets today, analysts believe the struggling company could soon become attractive prey for its acquisitive rivals.

The Dublin developer announced this morning that it is likely to incur an operating loss of between $1 million and $1.5 million -- this on top of a foreign-exchange loss of approximately $3.6 million, which the company attributed to the rapid appreciation of the United States dollar against the British pound and Euro.

The company said third-quarter revenue, which Roth Capital Partners projects at $16,920, has been "in line with seasonal trends and current market expectations." An exact figure, however, was not given.

Todd J. Eilers and Adam Krejcik, analysts with Roth Capital in California, wrote in a research note this morning that if third-quarter revenue indeed reflects seasonality, then Crypto's operating costs are likely tracking higher than expected -- leading to the greater-than-expected operating loss.

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Weekly Statistics from Bloomberg.com: CryptoLogic Ltd.

Listing

Low Close: 346.50 pence

High Close: 355.75 pence

Weekly Change: + 1.93 percent

Market Capitalization: £45.58 million

IG Snaps Up Tokyo Forex Trader

IG Group Holdings, a spread betting operator in London, has raised £82 million via a placing this morning to fund its acquisition of a majority stake in FXOnline Japan K.K.

FXOnline, a foreign-exchange trading company in Tokyo, has agreed to sell IG 87.5 percent of its issued share capital for £112 million, with a call option to acquire the remaining 12.5 percent from January 2011.

"The Group evaluates potential new markets as part of its strategy to further strengthen and extend its geographic reach," IG said in a lengthy stock-exchange release discussing the acquisition's details and motivations.

"The Directors of IG believe that FXOnline complements the Group’s existing operations and strategy within the Asia Pacific region and provides the Group with immediate scale and infrastructure in a key strategic market," it added.

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Weekly Statistics from Bloomberg.com: IG Group Holdings

Listing

Low Close: 298.5 pence

High Close: 325.5 pence

Weekly Change: - 2.1 percent

Market Capitalization: £999.5 million