02-02-2006 Hilton Group rejects bid for Ladbrokes

According to the Financial Times, the group rejected a £3.7 billion proposal from the private equity company CVC Capital Partners. US private equity firm Kohlberg Kravis Roberts, as well as rivals Blackstone and BC Partners are also thought to have contacted Hilton.

In a statement, the group confirmed to have received further approaches, which included a number of pre-conditions and failed to recognise the long term strategic value of Ladbrokes, but declined to name the potential bidders or provide further details.

The group also reiterated its confidence in the business and prospects of Ladbrokes and said to be looking forward to Ladbrokes trading as an independent betting and gaming company.

Investment bank UBS said today that it valued Ladbrokes at around £3.83 billion.