Ladbrokes Gambling Group Has Buyers

Published: Thursday, December 22, 2005 Online-Casinos.com

LADBROKES ONLINE CASINO & GAMBLING GROUP HAS POTENTIAL BUYERS

Hilton group confirms earlier speculation that suitors were interested in buying gambling group

Late in the week the British financial media reported that Brit hotels and gaming company Hilton Group Plc had confirmed earlier speculation that it has received expressions of interest in buying its Ladbrokes gambling business, lifting its shares to new highs.

Hilton said the expressions of interest emerged after U.S. group Hilton Hotels Corp. revealed in October that it was in talks to buy the hotels of its British namesake.

"However, Hilton Group remains focused on concluding its negotiations with Hilton Hotels Corp. in relation to the sale of the Hilton International hotels division for the benefit of shareholders," the company said.

Earlier this week the Financial Times reported that Hilton UK may get offers for its Ladbrokes betting-shop chain from companies including BC Partners Ltd., Blackstone Group LP and CVC Capital Partners Ltd. Hilton spokesman Alex Pagett confirmed the report, saying: "We are obliged to make a statement due to press speculation."

U.K. gambling companies have attracted interest following the relaxation of the 37-year-old laws that govern the industry. Gala Group Holdings Plc, the U.K.'s biggest bingo-hall operator, in October agreed to buy Coral Eurobet from Charterhouse Capital Partners and company managers for GBP 2.18 billion ($3.8 billion). Ladbrokes, the world's largest bookmaker, could fetch GBP 3 billion to GBP 4 billion.

Shares of Hilton Group rose 2.8 percent in London, giving the company a value of GBP 5.88 billion. The stock has risen 29 percent this year.

Ladbrokes, Hilton Group's fastest-growing and biggest business, helped cushion the company's profit when the lodging division lost bookings after the September 2001 terrorist attacks in the U.S. Following July's bombings in London, revenue per room at Hilton's hotels in the U.K. capital declined again.

The sale of the Hilton International hotels division would make the company primarily a gambling company with the focus on Ladbrokes, which accounts for about 60 percent of annual profit.

Ladbrokes is adding more shops and revamping existing ones to capitalise on the popularity of gambling.

The value of the British market, based on the amount won by gaming companies, will increase by 33 percent to GBP 11 billion by 2010 as more casinos are opened, according to Global Betting and Gaming Consultants in West Bromwich, England.

Hilton Group traces its origins to the village of Ladbroke in central England, where a local racehorse trainer set up a partnership in 1886 to take bets on races.