The bingo and casino operator is in talks to buy Britain’s third-biggest bookmaker, which become a buy-out target since earlier last month it appointed investment bank Lehman Brothers as advisers on a initial public offering likely to be worth £800 million.
Gala is likely to face stiff competition from private equity firms, but the ability to leverage cost synergies and cross-sell gambling products could give it an advantage over other potential bidders.
According to The Times, if Gala\’s bid is successful, it would create a £4 billion gambling empire operating big internet operations, 166 bingo clubs, 32 casinos and 1,260 betting shops.
The enlarged group would be well placed to take advantage of the deregulation set out this year in the Gambling Act and it might pursue an initial public offering within two years.
In separate news, Ladbrokes have been told by the Office of Fair Trading that they must shed four of the 141 betting shops bought in a £76 million deal with Jack Brown bookmakers in July to stave off a referral to the Competition Commission.
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