13-11-2007 Pricewaterhouse Coopers says £320m for the Tote is too low

According to the Telegraph, the auditor told the UK Government the racing consortium offer to buy the Tote for £320 million is too low and any deal at such price risks to be blocked by the European Community for contravening state aid rules.

PwC said the UK Government would struggle to demonstrate that a sale at £320m represents a fair price when Gala Coral offered to pay £405m for the bookmaker and pool operator. An auction on the open market now seems the best option despite the government's pledge to sell the Tote to the racing industry.

In other news, the Guardian said the Betfair's Starting Price betting service received the approval of the exchange's biggest customers at a series of demonstrations over the last week. The betting exchange also revealed plans to extend the SP betting service to other sports such as tennis and soccer.

"This has the potential to be the most significant step forward for Betfair since the exchange was launched," Stephen Burn, Betfair's director of horse racing, told the Guardian.