Offers For Ladbrokes Abuilding?
Published: Sunday, January 08, 2006 Online-Casinos.com
OFFERS FOR UK GAMBLING GROUP LADBROKES ABUILDING?
Rumours of a GBP 3 billion bid from private equity firms
Following the Hilton UK sell-off of its hotel holdings, clearing the way for subsidiary Ladbrokes to expand significantly as a free-standing gambling group there has been intense City speculation in London as to possible attempts to buy the company.
Three operations were originally flagged as potential suitors by industry analysts - CVC Capital Partners, BC Partners and Blackstone.
Although no formal approaches to Hilton/Ladbrokes have yet been made, rumour suggests that Blackstone is losing interest but that the other two private equity firms are set to compete.
This weekend it was reported by the Sunday Times that CVC Capital Partners has strengthened its hand ahead of a potential GBP 3 billion bid, and has hired investment bank Greenhill to provide advice on how to structure an offer. It has also begun discussions with banks about putting together a debt package.
If CVC does make a formal approach, it is thought to be keen to retain Chris Bell, Ladbrokes’ chief executive, who is one of the betting industry’s most highly regarded operators.
Regardless of whether CVC succeeds in taking Ladbrokes private, 2006 is expected to be a frantic year for corporate activity in Britain’s leisure industry.
Rank Group, the gaming and casinos firm, is among the largest companies expected to be taken over, with William Hill, the bookmaker likely to revive attempts to pursue a GBP 4 billion merger. Analysts also expect the online gaming sector, which last year created dozens of paper millionaires, to produce a flurry of deals.
