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.