Ladbrokes and Sportingbet Still Discussing Deal
Luckily most romances don’t have the same time pressure this pairing does. That’s because most couplings are not dealing with merger and acquisition laws as Ladbrokes is in their pursuit of Sportingbet. As it turns out, because of this UK ruling, Ladbrokes needs to make a quick decision, with less than one month to decide its future.
The issue at hand is whether Ladbrokes aims to pursue its purchase of Sportingbet; the pressure is based on the new law that recently came into effect. The law requires target companies a chance to give potential buyers a four week deadline to bid, though they can ask the London Stock Exchange to extend the deadline if needed. This differs from the rules of the past which provided a lot more leeway.
With this in mind, suitor Ladbrokes needs to inform Sportingbet of its intentions by October 17, 2011, though it doesn’t need to do so on bended knee.
Sportingbet issued an announcement stating that “talks are still continuing and a further announcement will be made in due course.”
Ladbrokes seems to be in the market for any and all potential partners as it has expressed interest in growing and increasing its product offerings. In the last year, it has made overtures toward a variety of companies, including 888. That deal fell apart due to price.
Ladbrokes Chief Executive Officer, Richard Glynn, has said that his company, which manages over 2,100 betting shops in the UK, would look for “appropriate opportunities that may help us accelerate that process and bring benefits to our shareholders.”
Sportingbet may be just that kind of company as it is known for its strong success in delivering margins above its peers and its solid internet gaming platform.