Ladbrokes clears decks for Coral bid
The deal is likely to attract the attention of competition authorities
Takeover talks with Coral have prompted Ladbrokes’ new chief executive Jim Mullen to put his review of the bookmaker on ice.
Mr Mullen, who took over three months ago, was scheduled to present the findings of his review of the business to the City today but has postponed it due to the ongoing discussions.
The possible merger will create the UK’s biggest bookmaker – with about 4,000 of the country’s 9,000 betting shops – and significantly boost the company’s online offering, which has trailed badly behind rivals such as William Hill.
The deal is likely to attract the attention of competition authorities, after a tie-up between the two companies was rejected by the then trade secretary, Peter Mandelson, in 1998.
Ladbrokes’ move is the latest chapter in a frenzy of takeover activity in the bookies sector, as firms respond to tougher regulation and taxes, such as December’s new levy on online bets placed in this country.
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