Ladbrokes Reject Second Takeover Bid
GVC holdings have reportedly had a second bid in attempt to takeover bookie-giants’ Ladbrokes Coral, turned down, according to recent reports.
GVC currently owns both Sportingbet and Bwin, with other bookies featuring on their ‘owned list’ too. The company were involved in attempts to takeover both William Hill and Ladbrokes Coral just last year.
The failure to takeover was reportedly due to a breakdown in talks over the disagreement on the worth of the two bookmakers, with the governments review of gaming machines producing uncertainty during talks, which made matters worse
According to the Financial Times, GVC’s valuation of Ladbrokes Coral amounted to a massive £2.7 billion, and would rise to £3.6 billion if the gaming machine issue was cleared by the government; if not, then the removal of gaming machines would seriously affect profits for the bookies sector.
Professional analyst from Goodbody, suggested that despite the reports, there is no clear conclusions over the deal.
However, they have recently noted that “If the reports are true, it confirms two issues. Firstly, the theme of sector consolidation in the face of increased regulatory pressure is likely to be prevalent for the foreseeable future.
“Secondly, there are significant differences in how people are valuing the potential regulatory impact from the triennial review.”
Both Ladbrokes Coral and GVC wished to remain quiet on the matter. Attempts to consolidate companies has been on the agenda of the bookie sector for several years now, with Ladbrokes and Coral joining, and similarly the joining of Paddy Power and Betfair.