Takeover speculation produced volatility in stock prices in the gambling sector this week.
Shares in Blue Square owner Rank Group rose 8¾ to 97p as investors bet on a takeover bid being tabled for the company, but later fell back to 89p when Malaysian conglomerate Genting Berhard denied rumours that it was planning an acquisition of the gaming and betting operator. UK media reports had suggested Genting was prepared to offer £1.24p per share.
Speculators also consider Ladbrokes a ripe target for takeover and its shares jumped by 15¼p to 326½p as a result, despite Citigroup placed the bookmaker stock on its ‘sell’ list citing limited prospects for growth and sizeable leverage issues as concerns. ‘We believe the stock has held up far too well,’ the financial institution said.
Healthy volumes and market volatility proved good news for spread-betting group IG Index, whose stock rose 31¾p to 359p.
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