MERGER BETWEEN SPORTINGBET AND UNIBET ON THE CARDS?
Merge would create a GBP 600 million group
The UK Press Association reports that online gambling operator, Sportingbet, is examining a merger with Swedish rival Unibet that would create a GBP 600 million group. The story broke today in UK tabloid, The Sunday Times.
The Sunday Times article reports that preliminary discussions have been held regarding the merge of the two entities, with further talks expected in the near future.
An unidentified source told the newspaper that there is still a need for many more discussions before agreement is reached and a deal sealed and that an announcement is not expected until 2011.
Sportingbet reported a fall in pre-tax profits to £6.9 million from £22.3 million in the year, but this included a £22.8 million settlement with the US Department of Justice over an investigation into alleged illegal internet gambling. The agreement, which analysts have said clears the way for potential mergers or takeovers, means the firm will avoid being prosecuted in the US for accepting online bets made by Americans between 1998 and 2006.