Ladbrokes Confirms 888 Takeover Discussions - 11-07-06

November 7 - After a week of speculation, UK online gambling giant Ladbrokes.com that it had held preliminary discussions with online casino and poker operator 888 in relation to a possible takeover bid. Get ready for online gambling takeover season...

888.com shares rose by 8p to 119p on the back of this news, which values 888 at £400m (US $758m). A take over figure of £450m has been the talk amongst analysts. The Ladbrokes share price also rose by 2p, placing a value £2.5bn on the company.

In a statement, Ladbrokes confirmed that it was "in early discussions with 888", but that "they had not decided whether a bid would be made or not." Rumors in the industry however indicate that an offer has been put on the table.

The story followed news that 888 and Party Gaming were in discussion last week, which seems to have come to nothing. Current rumors are that Party Gaming is in discussions with  Austrian sports betting company, Bwin, which the latter has denied.

One possible motivation for Ladbrokes being interested in 888 is the proprietary casino and poker software owned by 888. Tying the Pacific Poker network together with Ladbrokes' own network will make it a significant player.

A Ladbrokes delegation reportedly met with the Shaked family in Israel. The Shakeds still hold 50% of 888 stock. 

Whatever happens, we can be sure that a big deal is imminent.

Read our reviews of Ladbrokes.com and 888.com.

Please also visit our USA online casinos section.

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