The UK bookmaker confirmed that it is in the early stages of reviewing a possible transaction involving the online casino and poker operator. “No decision has been made as to whether any proposal will be made to 888,” it added.
While a spokesperson for Ladbrokes described the estimate of £470 million in the British media as too high, stockbroker Panmure Gordon said it was not convinced that the 888 deal was the right one for Ladbrokes.
“If a takeover is being considered, we believe it is unlikely to be as attractive to Ladbrokes shareholders as the alternatives, namely the buyback we have forecast starting next year and investing in online marketing in Ladbrokes own online business,” said the investment bank.
Of different opinion is Mark Brumby of Oriel Securities: “On the right terms a takeover of 888 by Ladbrokes would have considerable logic.”
“Ladbrokes would most likely fund the purchase largely with cash,” he added.
Calculators
