Ladbrokes Strategy Revealed

Speculation is running high in the UK on the possibility of Ladbrokes taking over the Gibraltar-based 888.com online gambling group. Rumors moved into high gear over the weekend with media reports on the British bookie's alleged strategy.

The Financial Mail and Sky TV reported that Ladbrokes could avoid potential US legal action with a specially-tailored ₤440 million takeover plan for 888, in a strategy which would see it strip the majority of their assets, rather than acquiring the group as a whole.

The situation has been brought about by last summer's US online gaming financial transactions crackdown, which forced a pull-out of many gaming firms, especially in the public sector.

One lawyer is quoted as saying: "If a company faces criminal liabilities in the US, selling up is not the end of it. The new owner could still be liable and face criminal proceedings. This new structure could give Ladbrokes an interesting defense by separating the corporate identities of the two companies." Another analyst pointed out that the proposed move could see Ladbrokes "... eat their cake and still have it."

Meantime Ladbrokes shares closed at a record high on Friday. It is reported that the non-executive directors on the Ladbrokes board have been holding up the talks for weeks by insisting on scrutinizing every legal detail.

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