Ladbrokes May Strike Takeover Deal With 888 Holdings

A takeover of online gambling group 888 Holdings by bookmaker Ladbrokes is imminent. The two companies have been in talks for over a month and there are rumors that a deal could be struck as early as next week.

Analysts have long believed Ladbrokes would make a take-over move in online gambling, identifying 888 Holdings and its 888.com casino brand as a strong match for the Ladbrokes onshore betting empire. The two gambling firms have been involved in discussions for over a month now, after Ladbrokes cut in front of PartyGaming to buy 888.
888 Holdings confirmed in October it entered into preliminary discussions with third parties following the suspension of its main US operations.

At 11.48 am, 888 shares were up 2.5 pct at 132 pence, while Ladbrokes shares were up nearly 1 pct at 405.50 pence.
An offer for 888 is expected to be pitched at between 140p and 145p a share, netting millions for the two sets of brothers who founded the internet poker and casino group.

PartyGaming would still be interested in the Israeli-owned online gambling company, as both companies were hit hard by their decision to withdraw from the US market following the signing of the Unlawful Internet Gambling Enforcement Act. It is understood, however, that 888 would prefer to be bought out by a traditional gambling company, rather than another online operator.

888’s chief executive is John Anderson, who had a long career at Ladbrokes and was executive director of the UK bookmaker for six years. This may as well contribute to a successful closure of the deal.