Gambling News by Gambling Headquarters

PARTYGAMING experienced a late flurry of buying on an apparent procedural setback in Congress over America's anti-gambling legislation. Bill Frist, the Senate majority leader, has been seeking to attach the anti-gambling measure to one of two "must-pass" Bills before Congress shuts down this weekend ahead of November's mid-term elections. But with legislators keen not to hold up the progress of the politically sensitive Homeland Security Bill, it was set to be pushed through yesterday without the gambling curbs attached. Separately, there was no sign that efforts to attach the anti-gambling measure to the Defence Bill - which itself appears unlikely to get through Congress before tomorrow's deadline - were making any progress. Followers of the online gambing sector suggested that the chances of the controversial legislation being passed this session had virtually evaporated. Further, although it may get a fresh airing in the so-called "lame duck" session - the period in which Congress still meets after elections have been held, but before the newly elected Congress has convened - there is also now the possibility that the legislative process will have to be restarted next year, effectively meaning a six- month delay.

With short-term investors taking heart from the impasse on Capitol Hill, PartyGaming rose 4¼p at 105¾p. The FTSE 100 gained 41.2 to5,971.3, with natural resources stocks again making much of the running. Aside from further gains in metals prices, miners were helped by a heavyweight circular from ABN Amro, which believes that this month's sell-off in the sector offers a good buying opportunity. The Dutch broker says valuations appear low relative to what is priced into other cyclical stocks.

Brambles jumped 20p to 488p as takeover talk refused to fade. One theory was that the pallet maker could be a target for General Electric at around 600p per share. A competing theory out of Australia overnight was that a private equity house is mulling a move at A$15 (598p).

A more pedestrian explanation is that the gains owe more to arbitrage activity ahead of Brambles' move of its primary listing to Australia in December. Under that scenario, proprietary traders who have been trying to profit from a valuation disparity between the two listings have been recently covering their short positions in the Australian stock, thereby triggering a squeeze.

Elsewere, bid rumours continued to follow Hanson, up 25p at 746p, which yesterday hosted an analysts' visit to its operations bordering the Thames Estuary. Speculative investors also continued to pursue Prudential, which rose 6½p at 643½p, on persistently strong talk of an imminent 750p a share offer.