Shares in bwin.party soared over six per cent in early trading after rival 888 Holdings confirmed it had submitted a bid for all of bwin.party's share capital.
By contrast, 888's share price fell over five per cent, with investors seemingly not sold on its plans.
888 said it believes there is "significant industrial logic in a combination of 888 and bwin.party" and signalled shareholder approval had been secured for the bid to rival approaches from Aim-listed GVC Holdings for bwin.party.
In a statement bwin.party said:
The board of bwin.party has noted the announcement made by 888 Holdings and confirms that it has received a proposal to acquire the entire issued and to be issued share capital of bwin.party.
The board and its advisers are conducting a detailed review of the proposals received to-date and will make a further announcement in due course, however there can be no certainty that these proposals will result in a transaction being completed.