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November 8th 2006
Ladbrokes and 888 in takeover talks
Ladbrokes Plc, the UK’s second largest bookmaker and gambling company, has issued a statement confirming it is in takeover talks with 888 Holding’s Plc.

888 Holdings Plc has suffered since the Unlawful Internet Gambling Enforcement Act (UIGEA) forced the company to pull out of the US altogether, from where an estimated 70 percent of its revenue was derived. The UIGEA has had a similar effect on other UK listed companies, such as PartyGaming and Sportingbet, and has caused billions of dollars to be wiped of the share values of these companies.

Among other things the UIGEA has forced the online gaming market to consolidate, and Ladbrokes are looking towards an acquisition of 888 Holdings as the perfect start. 888 Holdings has a very high profile in the UK and Europe, for both its online casino and its online poker room (Pacific Poker). Talks between the two companies were supposedly brokered by 888 Holdings’ outgoing CEO John Anderson, who is also an ex-Ladbrokes director.

888 Holding’s has a current market value of £375 million but it may take much more than this for Ladbrokes to take charge of the organisation. They must first persuade the Shaked brothers, who founded the company and still retain a 51 percent controlling share in 888 Holdings, to agree to the sale. A figure of £470 million seems the most likely to persuade the brothers to sell.



Submitted: 08/11/2006 10:01:37

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