SOURCE: Reuters

(London, England) — British amusement and gambling machine maker Inspired Gaming Group Plc (INGG.L: Quote, Profile, Research) said on Thursday it was still in talks with investment company FL Group which could lead to it being taken over.

Inspired Gaming -- which received an indicative 385p a share offer in September -- issued the statement in response to a fall in its share price. Its shares were still down 17 percent at 279p by 1234 GMT, after the statement was issued.

"We're just sat here getting hit... it basically says that it (the deal) is off, the price is telling you that," said one trader. Another trader said he was surprised there was only a brief rally after the statement, before the shares fell back.

In September Inspired Gaming said it had received an indicative 385p-per-share offer valuing it at 270 million pounds ($547.2 million) from an unnamed financial institution.

Reporting by Chris Wills; Editing by David Holmes and Sue Thomas