Empire Online confirmed today that it has launched legal proceedings against fellow online gaming outfit PartyGaming PLC, following the two firms’ abortive autumn mating dance.

Empire Online said it is seeking “substantial damages and injunctive relief from PartyGaming”. A the same time, it said, Empire Online and PartyGaming subsidiary WPC Productions are engaging in confidential arbitration proceedings.

Talks between the two emerged early in November, when Empire Online revealed it had received an offer from PartyGaming. On November 21, EmpireOnline said that it had terminated talks, after a protracted due diligence process and continued delays in the timetable resulted in PartyGaming making a “a revised proposal that is significantly different both in terms of the price and structure and at a level that cannot be recommended.”

Also on November 21, PartyGaming cofirmed it had made an offer for Empire Online at 60 pence per share.

A spokesman for PartyGaming said of today's suit, "We're confident we'll have a successful outcome."®