Stanelybet Speculation
William Hill Plc (WMH.L) continues to inspect Stanleybet, the betting arm of Stanley Leisure Organisation Plc (SLY.L), but the period of exclusive negotiation between the two companies is likely to terminate at the end of the week. William Hill has expressed confidence to the market that it will almost certainly buy Stanleybet for a price of over £500 million, but some analysts are skeptical that the price may be too high. If the companies aren't able to come to an agreement, plenty of Hill's competitor's are eager to step forward with a bid of their own for Stanleybet. Coral Eurobet, Fred Done and the Tote have already indicated interest in the Stanleybet business. The ability for the Tote to execute such an acquisition is questionable, however, because it is in still in the process of being sold by the government, and incidentally the European Commission's competition supremo, Neelie Kroes, is planning a full investigation into its sale.
Hills' announcement that it was in negotiations to purchase Stanleybet has prompted Malaysian leisure and casino operator Genting Berhad--the largest shareholder of Stanley stock--to up its stake in the company from 17 percent to just over 20 percent. Genting also bought more stock in British casino operator London Clubs International Plc (LCI.L), bringing its total shareholding up from 22 percent to 29.9 percent. Most analysts believe that if Stanley does dispose of its betting business to Hill, then Genting may try to push a merger between Stanley and London Clubs.
IG Group Floats This Week
Spread Betting firm IG Group is scheduled to begin trading on the London Stock Exchange on Thursday. Prices are expected to fall within the 112-139 pence-per-share range, which would value the company between £375-435 million. The Sunday Times reported that leading fund managers are planning to boycott the flotation in protest of the initial price being set too high by CVC Capital Partners, the firm's major shareholder. IG Index has dismissed that report as "garbage."
Empire Poker Eyes an IPO
The Times reports that Cyprus-based Tradal, the company that owns Empire Poker, may seek an initial public offering sometime in the future. The company has reportedly hired stockbroker Numis as an advisor to the flotation, which could potentially net the company £500 million.
Tattersall's Gets Green Light
Australian gambling trust Tattersall's has cleared one of the final hurdles in its aim to publicly float in Australia by winning in-principle court approval for its restructure. Victoria's Supreme Court has granted the 124-year-old private trust permission to convert into a company. Tattersall's had originally planned to float last year, but is now hoping it can do so by July of this year. With a potential pricing of A$2 billion, the float could be Australia's biggest of the year.