THE world’s biggest internet poker company is to press ahead with plans for a $10 billion (£5.4 billion) flotation on the London Stock Exchange despite the abrupt resignation of one of its City advisers.

PartyGaming, the Gibraltar-based group that launched the PartyPoker website in 1997, announced yesterday that it had completed a review of its strategic options but that it was no longer working with Investec Securities.

The Times understands that Investec had become uncomfortable due to issues including the questionable legality of internet poker in the US, PartyGaming’s biggest market, and the background in “adult entertainment” of one of the company’s founding shareholders.

David Currie, head of UK investment banking at Investec, said last night: “We were doing the strategic review and that has come to an end. Our role is now over and we have parted company.”

PartyGaming said it was “now considering the conclusions of the strategic review” in conjunction with Dresdner Kleinwort Wasserstein, its remaining adviser. It declined to comment further, although most observers predict that it will pursue an initial public offering (IPO) at the end of next month, or in September.

City sources expressed surprise that it was pressing ahead with an IPO. One source suggested that the same factors that had caused Investec to pull out were worrying DKW, claiming that the bank had also considered resigning a few weeks ago.

Yesterday PartyGaming announced the appointment of Michael Jackson, the chairman of Sage Group, the software firm, as non-executive chairman, while Brian Larcombe, the former chief executive of the private equity firm 3i, becomes non-executive deputy chairman.

Richard Segal, PartyGaming’s chief executive, said: “They are both guys with very substantial reputations and the fact that they are on board with this says something about PartyGaming.”

He said that there had been no falling out with Investec, adding: “The strategic review ended and their mandate finished. David Currie is a good guy and he and his team will be on my Christmas card list.”

PartyGaming, which would be catapulted into the FTSE 100 index, reported annual revenues last year of $602 million (£302 million) and earnings before interest, tax, depreciation and amortisation (ebitda) of $391 million. Analysts are predicting that ebitda this year will hit $600 million as the poker boom gathers pace.

Cassava Enterprises, owner of the 888.com gambling website, is expected to pursue an IPO in the second week of July or in September, depending on market conditions.

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