Will Guoco bid for Rank? (RNK)

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WILL GUOCO (probably not) BID FOR RANK?
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What indications/reasons can we come up with for Guoco mounting a bid sooner rather than later against the reasons for not mounting a bid?






PRO'S
1. Guoco have now bought 29% of the shares. 30% and they must bid!
2. Joint broker appointed, maybe to avoid sole broker conflict of interest with GS in readiness for bid.( Sole broker boss previously GS!)
3. Pension scheme sold off. No more pension liabilities and saving of future contributions of £30 million.( All arranged by GS!) Makes a bid much easier
4.Rank have received £59.1m VAT back from HMG and a further £42.5m in May 2010 making a total of £101.6m.
5. £500 slots have been doubled from 2009 after govt agreement.
6. Gentings £40m worth of Rank shares, with no dividend their investment is just lying there doing nothing, unless again they think or know there is going to be a good reason why the Rank sp is likely to rise sustantially.
7. Ian Burke ( boss Rank) previous deals and involvement with with Guoco.
8. Guoco and Genting are from SE Asia and may be unofficially acting in concert.
9. Relocation of the casinos into the Guoco hotels would bring added value.
10. New Gcasino model proving very successful and "G" already sits very nicely with the Guoco brand.
11. Once Vat bingo issue resolved, Bingo could be floated off as Mecca Bingo for a nice sum now that the bingo side is being re-modelled away from the old cinemas model.


CON'S
Guoco may only want a strategic holding for future..


Any other thoughts.
Grizzly xx




http://www.ft.com/home/uk Financial Times
http://business.timesonline.co.uk/tol/business/ Times Online Business
http://www.rank.com/ Rank Website
http://www.online-casinos.com
http://www.guoco.com/eng/ir/reports.asp
http://www.bluesq.com
http://www.meccabingo.com
http://www.gcasino.com
http://www.grosvenorcasinos.com/
http://www.grosvenorukpokertour.com/