Bookmaker Ladbrokes in new takeover talks

HIGH street bookmaker Ladbrokes Coral has reopened talks about a takeover by online rival and Foxy Bingo owner GVC in a deal worth up to £3.9bn.

Shares in Ladbrokes, which has around 30 betting shops in Northern Ireland, raced as much as 34% higher after the pair revealed “detailed” discussions over a tie-up that would see GVC pay £3.1bn in cash and shares for Ladbrokes.

The final price could reach £3.9bn, depending on the outcome of a government review into controversial fixed-odds betting terminals (FOTBs).

The talks come after two previous attempts at a deal between the pair, with the most recent discussions breaking down in the summer over price and amid uncertainty ahead of the Government’s gambling review.

The deal would create an on- line-led global gambling giant, combining Ladbrokes’ high street and online operations with GVC’s stable of brands, including Sportingbet and PartyCasino.

Under the terms of the potential takeover, GVC would own around 53.5% of the enlarged group and its chief executive, Kenneth Alexander, would take the reins. The firms said plans for the final management lineup would be worked out over the coming weeks.

They added: “The enlarged group would be an online-led, globally positioned betting and gaming business that would benefit from a multi-brand, multi-channel strategy applied across some of the strongest brands in the sector.”

GVC has said it would be prepared to offer up to £3.9bn if the review of FOTBs sees the maximum stake cut from £100 to £50.

But many in the industry believe it could be slashed to £20 or even as little as £2.