Small Buy Boosts Party Shares

Following a year of heavy selling in its shares, PartyGaming non-executive director Lord Moonie's small bit of stakebuilding today sent the group's stubborn stock up nearly 3 percent.

Moonie, appointed to Party's board in December 2007, picked up 159,404 shares -- a 0.004 stake -- at 19.9p per share.

Moonie's acquisition comes a week after Party's London-listed stock hit an all-time low, 17.50p, down an estimated 90 percent from the group's 176-p high in July 2005.

Chief Executive Mitch Garber, who is soon to depart the firm, suggested in January that Party shares would continue to trade at a discount until the company had completed negotiations with the U.S. Justice Department.

"If I had to be perfectly frank, I think it's acceptable to have that discount pending the outcome of the DOJ negotiations," he said.

Analysts with Daniel Stewart last June opined the downward slide in share value was connected with the "substantial remuneration" Garber receives via a planned sale program announced in March 2007.

Should Garber remain with Party until 2009, the brokerage said, he is in line to collect nearly £17 million in free shares and bonuses.

Garber has said he will not renew his current contract beyond May 1, 2009.

In January 2007, former PartyGaming Marketing Director Vikrant Bhargava cashed in 160 million shares worth an estimated £50 million.

Party shares were up 0.50p to 21.00.