While shares in casino operator London Clubs International were up 6% in early trading on fresh rumours bookmaker Ladbrokes is preparing a 140p a share bid, Sid Shamnath, investment manager at Titanium Capital, told Reuters a more competive market will require consolidation among casino players in the UK.
“British casino companies will have to merge if they are to compete and survive the onslaught of international operators waiting to invade their territory,” Shamnath said.
However, Shamnath believes takeover activity is more likely to be between UK-based casino firms because large US casinos are not interested in small players.
Rumours of possible mergers include Stanley Leisure and The Rank Group, Stanley Leisure and London Clubs International, Ladbrokes and London Clubs International.
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