GVC linked with reverse takeover of Ladbrokes-Coral
GVC, the company behind the bwin.party and PartyPoker brands, has been linked with a potential reverse takeover of Ladbrokes Coral.
According to the Financial Times newspaper, the proposed deal would value the recently merged Ladbrokes Coral operation at £3.2 billion (€3.8 billion/$4.03 billion).
The newspaper said advisors to GVC are believed to have put together a proposal similar to last year’s successful £1.1 billion takeover of bwin.party, which was formed mostly of shares.
News of the potential takeover saw shares in Ladbrokes Coral close 5.7% higher at 130.6p on Friday, approximately twice the average daily volume, while GVC was up 0.9% at 635p.
However, while Ladbrokes Coral is yet to officially comment on reports, some individuals in the gambling sector said talks may have already collapsed.
The news comes at a time when Ladbrokes Coral, which was formed earlier this year through the merger of the existing Ladbrokes and Gala Coral brands, is also said to be considering a bid for Australian betting operator Tabcorp.
Related article: Ladbrokes Coral considers bid for Australia’s Tabcorp