Shares of online bookmaker Sportingbet jumped a further 2% to an all-time high of 184p, amid rumours that Ladbrokes parent company, Hilton Group, has made a tentative bid approach with a cash offer of £807m, or 250p per share.
According to market sources the Hilton Group would prefer a “friendly” deal, but they are prepared to launch a hostile takeover if necessary. “I have no knowledge of the deal whatsoever,” Nigel Payne, Sportingbet\’s CEO, said.
Sportingbet\’s shares price have rocketed by 80% since buying Paradise Poker in October, in an acquisition that a fund manager defined “a big steal at only seven times next year\’s earnings.”
Industry analysts deem the deal unlikely as Sportingbet\’s US-focused business model presents potential serious problems for integration into the Ladbrokes brand. The dubious legal position of online betting in the US has prevented Ladbrokes from accepting US customers so far. Britain\’s biggest bookmaker would have to undergo a major change in its corporate direction.
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