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LADBROKES AND PLAYTECH DEAL IN THE WORK
Posted 2/9/11 : Both parties decline to comment but Glynn charged with expanding Ladbrokes presence
UK newspaper The Telegraph reports that Ladbrokes is exploring the possibility of a potential GBP 2.2 billion merger with internet software provider, Playtech.
Ladbrokes is currently in separate discussions with 888 Holdings Plc on a potential GBP 240 million takeover bid.
The UK-based bookmaker has reportedly instructed investment banks Greenhill and UBS AG to explore a possible tie-up between the two companies which would transform Ladbrokes from a consumer-facing business, with more than 2,700 betting shops, to one that also supplies software and online games to the betting, casino and poker industries.
Bloombergs report that Playtech gained as much as 5.6 percent on the back of the news, the biggest rise since December 14 2010.
The Telegraph does not reveal the source of the information and both Ladbrokes and Playtech spokespersons have declined to comment on the report, however, Ladbrokes spokesman, Ciaran O'Brien said that Ladbrokes Chief Executive Officer Richard Glynn "has a clear mandate to grow the company organically, and he’s focused on that. The board are also looking at other opportunities.”
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