Bookmaker Ladbrokes gambles on new move for internet casino 888
Bookmaker Ladbrokes is in early stage talks about an offer for Internet casino and poker group 888. The latest move comes four years after a previous £470m attempt to buy 888.
That deal fell through because of concerns 888 might be targeted by the US Department of Justice as part of a crackdown on online gambling.
Ladbrokes' latest approach, understood to be for around £240m or 70p a share, would be the first big move by new chief executive Richard Glynn ,who took over earlier this year after serving as chairman of spread-betting company SportingIndex.
Shares in 888 were up 8.75p (18 per cent) to 57.75p this morning whle Ladbrokes' stock held steady.
Place your bets: Labrokes' latest approach, understood to be for around £240m or 70p a share, would be the first big move by new chief executive Richard Glynn
If successful, it would be the first takeover by Ladbrokes since it was demerged from the Hilton hotels group five years ago. The earlier bid attempt, by former boss Chris Bell, ran aground because of concerns over the DoJ' s clampdown.
Unlike rivals, 888 has still not struck an immunity deal with the US authorities.
PartyGaming and Sportingbet have paid £68m and £21.2m respectively to the DoJ to ensure they are not prosecuted.
'Ladbrokes confirms that it is in very preliminary discussions with 888,' the company said in a statement.
'There can be no certainty these discussions will ultimately lead to an offer for 888 being made, nor as to the terms of any such offer.'
The Sunday Telegraph had earlier reported, without citing sources, that Glynn had made an £240m approach to 888.
Consolidation in the online gaming sector has been expected following the merger of PartyGaming and Bwin in the summer to create the world's largest internet gambling company.
At the time chief executive Gigi Levy said 888 was considering following suit.
'We look at consolidation as one of the possible routes to realising our full value and feel that longer term this is the direction the industry will take,' he insisted.
Ladbrokes' internet business is seen as a weak point for the company and it has lost ground to its rival, William Hill, after the latter entered an online joint venture with Playtech.
The bookie is being advised by Deutsche Bank and Greenhill, but it is understood 888 has courted other possible bidders, including online rival Sportingbet.
In the spring 888 issued a profit warning and in September abandoned its dividend after profits plunged in the first half of the year.
The company's shares rose strongly on Friday amid speculation it may be a bid target for US group Caesars Entertainment.
The firm was built by Israeli brothers Avi and Aaron Shaked and Shay and Ron Ben-Yitzhak.
The Shakeds stil own around 50 per cent of the parent company and the Ben-Yitzhak family around 11 per cent.
Most watched Money videos
- How to invest for income and growth: SAINTS' James Dow
- Fiat pledges to cease grey car production as they launch new EV
- Land Rover unveil newest all-electric Range Rover SUV
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- Mercedes has finally unveiled its new electric G-Class
- Mini celebrates the release of brand new all-electric car Mini Aceman
- Blue Whale fund manager on the best of the Magnificent 7
- Mini Cooper SE: The British icon gets an all-electric makeover
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Avon Protection handed £38m gas mask contract by MoD
- Cameron left red-faced as Greensill sues Government over...
- Will my newly self-employed husband cause us a remortgage...
- Two in five believe ovens will become obsolete as the air...
- Bailey pulls his punches on interest rates yet...
- BUSINESS LIVE: UK GDP grows 0.6%; IAG profits take off;...
- Watches of Switzerland buys Italy's Roberto Coin Inc for...
- ITV hit by Hollywood strikes as it pins hopes on Euros...
- BBVA goes directly to shareholders as it steps up bid for...
- Ford confirms it will cull another of its best-selling...
- Why we need more than a British Isa to move the dial on...
- Mortgage rates are climbing again - should we be worried?...
- Used car sales hit a five-year high as fresh supply of...
- ITV hopes for summer ad boom as it continues to reel from...
- Vodafone told to boost security as £15bn Three merger is...
- MARKET REPORT: North Sea giant Harbour closes in on £9bn...
- Private chauffeurs, spa days and more independence: How...
- Bank of England paves way for Britain to cut interest...