London-listed Ladbrokes' courtship of online operator 888 may be nearing its conclusion, with a £490 million ($958.9 million) deal rumored to be struck as early as next week.
The two companies have been in furtive negotiations for over a month, with Ladbrokes--after a deluge of media inquiries--announcing that it was in "early stages of reviewing a possible transaction involving 888" on Nov. 5.
The company's offer for 888 is expected to be pitched at between 140 pence and 145 pence a share. 888 majority share holders--brothers Avi and Aaron Shaked and Shay and Ron Ben-Yitzhak--stand to net millions, though it is unclear whether they will liquidate entirely or take a share in Ladbrokes. Currently their two-thirds stake in the company is worth upward of £300 million ($587.2 million).
The acquisition would strengthen Ladbrokes' online gambling operation, increasing liquidity on its poker sites, while providing software capability that it currently outsources. Analysts, meanwhile, have estimated cost savings could be as high as £30 million ($58.7 million).