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September 5th 2006
Harrah’s in takeover bid for London casino company
Harrah’s Entertainment Inc., owner of the WSOP brand, has made a bid approach to buy the London based casino firm London Clubs International (LCI). The bid is apparently supported by the LCI board.
Harrah’s Entertainment’s bid is the second bid for a UK gambling company in less than a week, coming on the heels of a bid for Stanley Leisure plc that caused the firms share price to jump to over 800p per share. It appears the UK gambling scene may not be UK-owned for much longer.
Shares in LCI have also rocketed since the bid-approach was made public, not least because Harrah’s offered 125 pence per share; a 25 percent premium on Wednesday’s closing share price. Harrah’s bid totalled $533 million.
LCI operates a total of 11 casinos in the UK as well as several projects in South Africa and Egypt.
The bids for Stanley Leisure and LCI make it clear that the international gaming giants are preparing to develop big operations in the UK. With the rules on casino regulations already relaxed and possible further deregulation in the pipeline, the UK market offers some of the biggest potential of all western markets. Don’t expect the big boys to watch from the sidelines.
Submitted: 05/09/2006 11:36:58
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