Ladbrokes bids for rival
BOOKMAKER Ladbrokes yesterday confirmed it has made an approach for Sportingbet, sending shares in its smaller rival up 13 per cent.
Ladbrokes has been looking for a way to expand its presence in the online gaming market for some time, with talks with 888.com falling through earlier this year.
The betting giant stressed the talks are “highly preliminary” and said there was no certainty they will lead to an offer.
Chief executive Richard Glynn said: “The board has set out previously a clear organic strategy for Ladbrokes. We also stated that we would explore appropriate opportunities that may help us accelerate that process and bring benefits to our shareholders. These talks should be seen in that context.”
The 888 bid collapsed in April but analysts believe a deal with Sportingbet would be easier to pull off. The online firm’s shareholder register is not dominated by founders, who can complicate negotiations, and management has previously indicated its openness to a takeover.
Sweden’s Unibet pulled out of talks to take over Sportingbet last November, although sources close to Sportingbet said that the company remained in talks with several other parties.
Ladbrokes got off to a good start to the year, with its first-quarter revenues rising by 2.3 per cent. It also cut its net debt by £48.7m to £443.3m.
advisers: sportingbet
Emma griffin
Oriel
SPORTINGBET is being advised by Lazard and Oriel, with Emma Griffin heading up the Oriel team. She has also worked on Oriel’s advisory team for DTZ, the real estate firm currently fielding takeover interest. Jonathan Walker joins her on Oriel’s team.
Heading up the team for Lazard is Cyrus Kapadia. Kapadia has served as managing director and deputy head of UK investment banking at the financial consultancy. He has been at the firm for 14 years after joining in 1997. Previously Kapadia was a chartered accountant at PwC for three years.
Also on the team for Lazard is Charlie Foreman, who joined the firm as a managing director of UK Capital Markets Advisory and M&A. He joined Lazard from Deutsche Bank, where he was a managing director in the UK coverage team. He joined Deutsche Bank in 2002 in the corporate broking team and in 2005 was appointed head of UK corporate broking and equity capital markets. He became a senior member of the UK coverage team in 2006.