The Ladbrokes Coral Group PLC (LON:LCL) (LCL.L) share price has risen 25% today after it announced that it is in detailed discussions regarding a potential combination with GVC Holdings PLC (LON:GVC) (GVC.L).
Based on a closing GVC price overnight of 911.5p and 135.65p for Ladbrokes, the offer would values Ladbrokes Coral at £3.1bn or 160.9p per share, with the CVR of up to 42.8p per share potentially taking the total value up to £3.9bn.
In a joint statement, the companies said GVC has offered to buy Ladbrokes Coral for about £3.9bn.
It would see Ladbrokes Coral shareholders own around 46.5 per cent of the combined group and GVC around 53.5 per cent.
Senate blue ribbon committee to probe dengue vaccine controversy
SECRETARY Richard Gordon will lead an investigation into the controversy surrounding an alleged defective dengue vaccine.
"The enlarged group would be an online-led globally positioned betting and gaming business that would benefit from a multi-brand, multi-channel strategy applied across some of the strongest brands in the sector".
The determination of the senior management positions are to be finalised over the coming weeks, but both parties have agreed that GVC's Kenneth Alexander will be the CEO of the enlarged group following completion.
The final value of the deal is dependent on the outcome of a Government review of controversial fixed-odds betting terminals (FOBTs), which could see the maximum stake on the gaming machines reduced to as little as £2. Although there has not been a firm offer, the two companies appear to be positive about the potential for a deal to be done.
Atlanta mayor's race too close to call
But we should allow Bottoms to begin her term with a clean slate, and prove to her constituents, why she deserved to win the race. A candidate in Atlanta's mayoral race is calling for a recount after voters delivered a almost split decision Tuesday night.
The proposed takeover would give it access to the Ladbrokes, Coral and Gala brands and the combined company would compete with William Hill and Paddy Power Betfair.
Ladbrokes Coral and GVC Holding said that Thursday's announcement does not amount to a firm intention to make an official offer.
"The enlarged group would have strong growth prospects with momentum in its online businesses, potential for material synergies including the use of leading proprietary technology, and the opportunity to select the best of both people and operations".
For fast-growing GVC, which since making the jump from AIM to the full list last year has grown organically and through acquisitions such as Bwin.Party, this is its third attempt at a tie-up with Ladbrokes, following talks in August and a first tilt last year.
No. 2 Kansas handed first defeat of season by Washington
Though it wasn't technically a home game for Kansas , the Jayhawks had won 35 of their last 44 games played at the Sprint Center. Junior guard Lagerald Vick scored a career-high 28 points, but Kansas (7-1) got little offensive help elsewhere.