Ladbrokes Offers Half as Much for 888 Shares than in 2007

Published Monday, December 20, 2010 -

The stock market reacted swiftly with the news that gambling giant Ladbrokes would bid to take over another prominent online gambling operator 888 Holdings.
The share price for the 888 Holdings stock rose a massive eighteen percent after it was revealed that the historic English bookmaker Ladbrokes would try to obtain the firm.
Ladbrokes new Chief Executive Officer Richard Glynn, who was recently appointed in April was brought on board to revitalize the firms lagging online performance.
Even though net revenue for Ladbrokes has gained a seventeen percent increase in the third quarter it still lags behind rival operators.
Analysts questioned whether 888 was up to the task as its sports betting division has shown little promise for Ladbrokes slumping sporting market share in the UK.
888 has had it’s fair share of issues in the USA. Ladbrokes tried and failed to gain the company with a 140p a share offer four years ago. The possible risks are still in play in the USA because 888 has still not completely settled with the US Department of Justice.
“Clearly the mere fact that they’re sitting down shows the risk appetite is higher now, under Richard Glynn, than it was. It’s not as if Ladbrokes doesn’t know about the US situation,” commented Nick Batram, senior analyst with KBC Peel Hunt.
888 Holdings which is 61 per cent owned by the founding Shaked and Yitshak families from  Israel has turned in several years of disappointing performances, with margins suppressed by high overhead.
Batram commented on the seventy p a share offering for 888, half of the original 2007 offer from Ladbrokes, “If I was an 888 shareholder and I was offered 70p a share I would bite their hands off,” While shares in 888 rose significantly Ladbrokes took a minor hit with a small decline.




Related news

Return to Latest News