Ladbrokes Share Discussion Threads

[hllpri] 25/6/2015 19:23

Something fishy going on.

After Tuesday's announcement of the bid talks with Coral, the shares of

[capercaillie] 24/6/2015 13:35

Every credit to Jim Mullen - he has acted decisively since his appointment. The Irish operation, merger talks and now International streamlining.

[speedsgh] 24/6/2015 11:55

Ladbrokes Streamlines International Operations -

[stephen1946] 24/6/2015 10:16

mmc71 good reasoning. you could be right.

[mmc71] 24/6/2015 08:46

IMO the regulators are unlikely to step in this time. High street betting shops generate most of their revenue from slot machines, not betting. Most betting is now done online where there is plenty of competition.

[speedsgh] 24/6/2015 08:35

Ladbrokes in early talks with Coral over merger -

Bookmaker Ladbrokes (LAD) has confirmed it is in early-stage talks with Coral Group about a merger. Peel Hunt analyst Nick Batram retained his ‘buy’ recommendation but placed the 135p target price ‘under review’. The news sent the shares 17.7% higher to 143.7p yesterday.

‘Ladbrokes has confirmed press speculation that the two businesses are in early-stage merger discussions,’ he said. ‘The deal structure, timing and terms have not been outlined, but Ladbrokes stated that it may undertake an equity issue to fund the takeover. The deal presents obvious opportunities in an industry that has been hit by regulatory hurdles, making industry consolidation more likely.

‘The combined group would benefit from synergies in costs and execution to generate shareholder value, as the companies use the same online platform which in our opinion reduces the execution risk of the merger. If talks proceed, the Competition and Markets Authority would have much to say about any proposed transaction but we expect it may keep a more open mind than the first time Ladbrokes showed interest in Coral.’

[stephen1946] 24/6/2015 08:13

this merger has NO chance, competition busybodies will prevent it.

P.P. or some other outfit will be in very quickly to buy Ladbrokes now.

[woozle1] 23/6/2015 19:05

PTEC would be onside. I think that they've worked with Gala and so everyone knows each other. A big plus here will be the razor sharp focus on cash generation and margins that Gala bring from LBO

[asusasus] 23/6/2015 18:08

I am holding for the big money. I reckon there will be some counter bids coming in from here. Jim Mullen doesn't seem like he is messing about.

[oneillshaun] 23/6/2015 14:17

good call Spod i am on 29% profit with over 72,000 shares so a big win for me. Now it is greed!!!

[spob] 23/6/2015 12:59

Just sold LAD for a very healthy gain inc the recent divi

not interested in paying up for another company with too much debt through a rights issue

if a deal does proceed, i will re-evaluate only after the event

[oneillshaun] 23/6/2015 12:00

maybe 136 is a little early, the only down side is the Playtech side of things no way Gala will anything to do with that and that could be the point when Playtech make a bid.

[doohoma3] 23/6/2015 11:42

got out at 136 did I sell too soon

[oneillshaun] 23/6/2015 11:29

Wow I have just landed in Amsterdam and what great morning for LADS, huge volume today as well, loving this ride, so far up 28%.

Pretty sure PP or another company will want to make a bid very fair in the gaming business that multiple companies are not interested at the same time.

[mmc71] 23/6/2015 10:57

I really dont see any rival bids. High street betting shops are dying a death - the only reason they still exist is the income they generate from slot machines and this is being ever more tightly regulated.

The only value in taking over (or merging with) Ladbrokes is the cost synergies gained from closing duplicate shops and reducing head count, which basically means Coral. From what i've heard WH would rather close shops than acquire new ones too.

[mamcw] 23/6/2015 10:46

PP would be able to save the LADs dividend and UK betting levy through its domicile - enough to cover the interest bill on the cost of LADs imo.

[scotches] 23/6/2015 10:22

I recall the first time this was tried in 1998 and it was viewed as terrible news for punters that one of the major prices was going to be removed from the market. Peter Mandelson was praised for listening to punter concerns and blocking the takeover.

Nowadays it doesn't matter much. Price sensitive punters have plenty of other options including Betfair. If you check any footy match on the comparison sites the best prices are nearly always at 100% - ie much improved prices in the last 20 years but since things are so much more accurate it is difficult to find pricing errors.

[fairenough11] 23/6/2015 10:11

PP couldn't afford Ladbrokes imo.

The synergies/cost savings from a coral/Ladbroke merger are compelling,you could immediately strip out £millions of back office costs(which go straight to the bottom line) and obviously where they are in competition with each other,shop closures,although that leaves the door open for another entrant so it doesn't always work out that you retain all the business from a closure in your remaining shop.
The biggest saving is--one set of management all the way down.Massive imo.

[mamcw] 23/6/2015 10:00

Numbers 2 & 3 in the market getting together seems sensible.

However, the more interestng angle seems to be whether this will spur one of the other players into a spoiling bid for LADs, as if this deal goes through, it will make further consolidation very difficult from a competiton perspective - thinking of the position of Paddy Power; put up or shut up time.

[stephen1946] 23/6/2015 09:28

simply put, sensible move for both.

[mmc71] 23/6/2015 08:52

The merger makes a lot of sense. There are plenty of shopping parades that have both a Ladbrokes and Coral, so would imagine there will be a lot of shop closures and hence cost savings.

[trentendboy] 23/6/2015 08:30

Nice jump. Need more to stop me being underwater but could help the divi and is a good long term prospect.

Of course it could now flush out other buyers.

Remember there is a massive shortage of quality assets in this space with the right brand awareness.

LADs is prime real estate.

[brownie69] 23/6/2015 08:16

It could be a great deal.

But with no terms available then its too early to say who will be getting the best of the merger. Don't forget theres a canny Private Equity ownership on the other side of the table.

Interesting though.

Lots going on in this sector with news due any time of the preferred bidder for BPTY.

[asusasus] 23/6/2015 07:25

What does everyone think about this possible merger? Looking at the combined entity's balance sheet it looks great if this happens with a significant rerate on the cards!

[smicker] 22/6/2015 23:40

Merger and rights issue