Bidding War Has Started On Ladbrokes
Published: Thursday, February 02, 2006 Online-Casinos.com
BIDDING WAR HAS STARTED ON LADBROKES
Reports suggest one offer of almost GBP 4 billion turned down
Speculation on the fate of the Ladbrokes betting group following the Hilton
Hotels sell-off intensified this week as Reuters reported that bids had been
made for the betting group but not accepted.
Ladbrokes parent group Hilton, which is selling its hotels to U.S. namesake Hilton
Hotels, said it had received several more "expressions of interest"
for Ladbrokes since it first announced approaches in December, but not one that
would encourage it to sell.
"These approaches included a number of pre-conditions and failed to recognise
the long-term strategic value of Ladbrokes," Hilton said in a statement.
But a Hilton spokesman refused to be drawn on a report that a GBP 3.7 billion
bid from CVC had been rejected.
Reuters quotes sources who revealed that private equity groups CVC Capital
Partners, BC Partners and Blackstone were keen on buying Ladbrokes,
which has 2,000 bookmaking shops and online and over-the-phone betting interests.
Investment bank UBS said on Thursday that it valued Ladbrokes at around GBP 3.83
billion.
"The board reiterates its confidence in the business and prospects of Ladbrokes
and is looking forward to Ladbrokes trading as an independent betting and gaming
company," Hilton said.
U.S.-based Hilton Hotels Corp. is paying the UK Hilton Group GBP
3.3 billion for its hotel operations in a deal expected to close within the next
few months.
