OP executives of gaming group Ladbrokes have flown to Israel this weekend to hammer out a £470m takeover of online betting company 888.
Chief executive Chris Bell is meeting John Anderson, his opposite number at 888, as well as the company's founders and majority shareholders, Avi and Aharon Shaked, in Tel Aviv to discuss a cash and shares offer.
If the deal goes ahead, it could mean the Israeli brothers, who together own 51.2% of 888, will become the largest private investors in Ladbrokes, which is valued at about £2.5bn.
The dramatic intervention by Ladbrokes gatecrashes merger talks between 888 and rival PartyGaming, which have been under way for the past two weeks.
But it is understood the Shaked brothers want to establish ties with a conventional gambling company rather than another online outfit.
Acquisition of 888 would give Ladbrokes cost-saving opportunities, notably the chance to end its £21m-a-year software contract with Microgaming. All the software is created in-house by 888 and it is believed to have several technologies to combat the loss of the American market.
Both companies are based in the same building in Gibraltar and a merger could reduce head office and staff costs by £9m.
Anderson is a former Ladbrokes executive and retains strong links with ex-colleagues.
Ladbrokes has been eyeing the e-gaming sector since shares went into freefall last month after new laws banning online gambling were introduced in America.
Shares in 888 have held up well compared with the rest of the sector, where £4bn was lost in just one week after the American ruling. Shares at 888 are down only 27% from 150p to 110p, reflecting the fact that only 60% of the company's operations are exposed to the US.
Ladbrokes has also had problems with its own online business, in particular in Scandinavia where it received a drubbing from the state lottery company. It is understood to be looking at a number of potential targets in addition to 888.
Though industry experts praise Bell's management since the company demerged from Hilton Group in February, many view acquisition as the best route to growth.
One insider said: 'Though gambling deregulation in the UK will have a positive effect on the home retail business, if Ladbrokes does not act now in the online world it will lose out to competitors from abroad, especially Asia.'
The Shaked brothers launched 888 after Aharon, a dentist, went to a conference in Monte Carlo and saw the popularity of the casinos.
Neither were gamblers, but Avi's telecoms background catapulted them to success. About 30% of the company floated in 2005, netting the brothers £52m each.
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