Ladbrokes in new 888 takeover plan
UK bookmaker Ladbrokes has come up with a novel buy-out plan for 888 in an attempt to distance themselves from any potential legal action in America.
Talks between the two companies, which first began last November, stalled amid fears that Ladbrokes would be at risk to US anti-gambling law enforcers should the acquisition go ahead.
However, Ladbrokes has now drawn up a £440 million plan to buy 888’s assets, which would then leave the company as an independent entity. As a result, Ladbrokes would not be accountable for any potential criminal action the online casino company could face.
Ladbrokes would strip the company down to the bare-bones, including taking the website and customers, but would stop short of buying the whole company.
“Asset purchases are an excellent way for companies to buy into profitable growth while getting round the risk, which appears to allow licensed operators like Ladbrokes to have their cake and eat it,” said Paul Leyland, analyst at stockbroker Arbuthnot.
As a result of the new optimism surrounding the deal, Ladbrokes shares reached a record high of 449.25p on Friday.
Editor, Jackpot.co.uk - 2007-01-15 13:24:30