It looks as though online casino company, Empire Online, a promoter of online poker and online casino sites, pulled out of takeover talks with PartyGaming today.

Empire stated that PartyGaming, the UK's largest online casino, had revised a takeover approach made earlier this month.

In the beginning, PartyGaming presented an all-share offer valuing Empire at 10 percent of an enlarged group. Meaning,  nearly £400m. Since then, with investors taking the view that online gambling has eased, Empire's shares have dropped, and the company is now worth about £260m.

The changed offer, Empire said, had been significantly different, both in terms of the price and structure and at a level that cannot be recommended. Empire Online has therefore terminated discussions with PartyGaming.'

PartyGaming made an offer for Empire when relations between the two were already tense.