Ladbrokes CEO rules out any takeover deals |
|
|
Published
:
Mon, 27 Feb 2006 09:00
|
LONDON: Chris Bell, chief executive of the rechristened Ladbrokes Plc., has reiterated that there is no intention of taking the business private, even as the market is full with reports of a takeover by equity firms like CVC Capital Partners, Blackstone and BC Partners.
He said he is ruling such a prospect, insisting that he is not interested in pursuing a buyout to make millions like his rivals William Hill and Coral have done. Ladbrokes, which belonged to the Hilton Groups of Britain, has become a standalone company with a new name following the sale of the hotel business to Hilton Hotels Corporation of the U.S. for 3.3 billion pounds.
Analysts are, however, not willing to bite this. Many of them feel Ladbrokes will not be able to resist the offers that could come in sooner than later now that the company's valuation is possible.
When asked how long he would be able stay independent, Bell had said, "The straight answer is that we're acting in the shareholders' interests. And that is an offer with a 30 per cent premium to the share price."
He said he has to demonstrate why the group has a bright future as an independent, quoted company.
Bell said his strategy now focuses on taking the firm international. He has already done the groundwork in this regard by forging partnerships in Scandinavia and Greece. More recently, the company entered into a consultancy deal with China Sport Lottery in Beijing. But, Bell said Ladbrokes is unlikely to open its own shops in China in the near future.
U.S as a potential market is high on the company's agenda. It has been going slow on taking internet bets from the U.S. in view of the illegality of online gambling in that country. The company is reviewing its strategy in this regard. While sports betting is not a possibility, since it is illegal, Bell said casino games and poker are possibilities and "that’s what we will be reviewing".
Bell is also upbeat about markets in Asia and Europe, although he preferred not to give details.
|
|
|
|
Print this Story
Hilton betting chain Ladbrokes acquires Jack Brown 