Affable Acquisition? -- Following news of Genting's newly acquired holding in Rank, the Financial Times reports that sources close to the deal say that Genting's intentions are "entirely friendly." The source, whom the paper did not name, said that contact with Rank was made initially by the Malaysian group. "The intention was to be friendly," the source said. Meanwhile, Rank "insiders" have opined to the paper that Genting "is more interested in a strategic position in Rank rather than building a platform for a possible approach."
Spend on Genting -- In a research note published today, Affin Investment Bank Research said it maintains its buy ranking on Genting at CNY 7.90 ($1.06), keeping its target price of CNY 10.40, which implies a FY 2008 price-over-earnings of 24.2 times. Affin, like the British media, has predicted Genting's 10 percent holding in Rank could trigger a bidding war among Harrah's, Ladbrokes, William Hill and Singapore-based BIL. The note added that Genting may have spent £39 million on 10 percent of Rank's current market cap of £392.5 million.
Too Little Too Late -- This morning's Guardian takes a less rosy view of the Genting acquisition, saying that the excitement "comes too late for those who have kept faith with Rank over the years." The paper called the London-listed operator a "shrunken business," and suggested that Rank brass are "perceived to have their backs against the wall: a reasonable offer would be hard to resist, says the market."
Digging for Profit -- Aussie sports betting group Marginbet said it will move away from online gambling to concentrate its efforts in the mining sector, and has announced the sale of its Portlandbet business. In a note to the Australian Stock Exchange, the company announced it had decided on the move following a report that it had commissioned. "On the basis of the findings of the report, the board as resolved to focus its activities solely within the mining sector," the company said. Portlandbet listed on the ASX in September after raising A$2 million to fund its expansion. Trading in its shares was suspended on Nov. 21.
Jackpot -- Bloomberg reports that in morning trading, Germany-based Fluxx AG climbed 0.11 euros, or 3.2 percent, to 3.60 euros on Fluxx's announcement that it expects a record lottery jackpot in the country to increase earnings.
Stock Watch -- In mid-afternoon trading on the LSE, Rank is down 6.50p to 102.75, 888 is down 3.25p to 136.25 and London Capital Group is down 20p to 352.50.