Paddy Power Reportedly Looking To Acquire Ladbrokes
Rumors are floating around that Britain’s second largest bookmaker may be acquired British gaming company Paddy Power. According to the reports Dublin-based Paddy power could be putting in a bid of £1.6 billion or 175p a share, Paddy Power are keen to get in on the deal early as they are looking to take advantage of the underperforming online operation and integrate it in their successful offering. The rumor mill was set ablaze as nearly 25.5 million Ladbrokes shares recently changed hands.
Following the rumors Ladbrokes shares were trading at 125.5p up from 122.3p at the start of the day. Ladbrokes is been courted by more than just one suitor as it reportedly received a bid from the Irish Boylesports.
Markey analysts were optimistic on the prospects for Ladbrokes and upgraded Ladbrokes stock from “hold” to “buy”. Experts like Broker UBS estimates that Ladbrokes’ online business could be worth as much as £700 million in 2016.
All eyes will be on Ladbrokes new CEO Jim Ullen who is set to layout his plans and strategy on June 30.Brokers are advising him to increase digital spend and remove Sky TV service form its shops.